Los Gatos developer Muhammad Safadi, his nephew Scott Safadi and real estate broker Raquel Ramirez are in hot water: all three have been indicted by a federal grand jury for bank fraud, conspiracy and making false statements to lenders, ultimately defrauding them of $5.5 million.
The charges are the result of an IRS investigation, accuses the Safadis, who owned Focus Construction, of building homes and then selling them to buyers who they knew were not qualified. In order to facilitate the loans, they submitted phony income and other documents to the lenders. The two men made over $4.5 million on their transactions, while Ramirez earned $230,000.
Read the original article in the San Jose Mercury News.