Laura Duffy, the U.S. Attorney for the Southern District of California, has announced indictments in a mortgage fraud case that involved $100 million in real estate in California and Washington state.
Laguna Hills loan processor John Allen, 54, was charged last month by a federal grand jury for submitting fraudulent loan applications to lenders using straw buyers. The straw buyers were promised $10,000 in exchange for their participation in the scheme.
Los Angeles accountant Audrey Yeboah, 54, has already admitted her role by creating phony financial statements such as pay stubs and W-2 forms on behalf of the straw buyers. According to her guilty plea, Yeboah also admitted to reviewing financial statements that totaled over $14.5 million in kickbacks from the scheme.
Others who have been charged in this case are Mary Armstrong, an unlicensed mortgage broker; Armstrong’s assistant, William Fountain; Ramona real estate agent Teresa Rose; and a Seattle-area businessman named Justin Mensen.