California Real Estate Fraud Report

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28
Nov

US Attorney’s Office Gets Guilty Plea from Kaveh Vahedi in Mortgage Fraud Case

The U.S. Attorney’s Office for the Central District of California has scored a victory in the fight against mortgage fraud and real estate investment fraud by obtaining guilty pleas from defendant Kaveh Vahedi, a former licensed mortgage broker and self-described real estate investor.

On November 26, the United States Attorney filed allegations, that from 1999 through 2008, Vahedi, 51, submitted more than 250 fraudulent loan applications to Countrywide Bank through his mortgage brokering firm KGV Investments, Inc., based in Glendale in Los Angeles County. Prosecutors alleged that Vahedia conspired to submit these applications to “Co-Schemer 1”, an employee at Countrywide, and paid cash for the services of “Co-Schemer 2”, a bookkeeper, to create fraudulent employement and other financial documents. Many of the loan applicants were instructed to sign blank loan applications, which were filled out by Kaveh Vahedi before being presented to “Co-Schemer 1.”

Among his victims was his own father: Vahedi posed as his father, without his father’s knowledge or permission, in order to take out a $493,000 home equity line of credit (HELOC) against the latter’s home. That’s in addition to the more than $200,000 he stole from his parents’ bank account.

The second count of the allegations charges that Kaveh Vahedi solicited people to invest their money with KGV Investments from 2005 through 2009 in what was found to be a Ponzi scheme. He told the investors their money would be used to purchase development projects in San Diego, China and Dubai, all of which was false. He gave them promissory notes guaranteeing a 50% rate of return within nine months. In fact, he paid his initial investors with money from earlier investors  and diverted much of the funds for his personal use, which included paying his mortgage, his leases on luxury cars, his son’s private school tuition. The 31 investor victims lost a total of approximately $8 million as a result.

Faced with the evidence presented in the United States Attorney’s allegation, Kaveh Vahedi signed a plea agreement on November 26 (the same date), agreeing to plead guilty to one count of bank fraud, one count of wire fraud and one count of conspiracy. He could face up to 55 years in prison and fines totaling $1.5 million when he is sentenced, although the U.S. Attorney, in exchange for the guilty pleas, is expected to seek imprisonment of 121 months, full restitution to the victims and other parties yet to be identified. United States District Judge Dean D. Pregerson will hear the guilty pleas.

Several of the investor-victims have sued Kaveh Vahedi in state court and won civil judgments against him.

No word on the fates of Co-Schemers 1 and 2, who have not been identified, or the persons who applied for loans knowing they were unqualified.

You can read a summary of the plea agreement on the U.S. Attorney’s Office Central District California website. The FBI and the Secret Service were the investigating agencies.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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