California Real Estate Fraud Report

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28
Mar

San Diego Couple Sentenced for Mortgage Fraud

A married couple who worked in the loan industry received sentences of three years and five months for participating in a multimillion dollar mortgage fraud.

Eric Elegado and Charmagne Elegado pleaded guilty in October 2013 to conspiracy to commit wire fraud in a mortgage sche. The Elegados, both 49 and well-known in the Filipino community were very successful in San Diego real estate.  Eric was on the flamboyant side, putting his face on bus benches and billboards and parking Bentleys, Ferraris and Rolls Royce cars he owned outside his real estate seminars.

According to the prosecution, the Elegado’s crimes occurred from  December 2005 to February 2007, when Charmagne was working for New Century Mortgage. New Century Mortgage, based in Irvine, was considered by some experts to be the Ground Zero for the housing bubble, with its novel subprime loans, aka “liar’s loans”, where borrowers could get a mortgage on stated income, meaning no documentation was required. The prosecution had contended that not only had the couple procured loans for unqualified buyers, they also obtained some mortgages for the borrowers that were higher than the actual price of the homes. The excess was skimmed and then run through shell corporations.

The couple’s defense was that they were just trying to help the borrowers buy homes.

According to the FBI, the couple earned $3.5 million on over 100 fraudulent loan transactions and the losses to lenders amounted to approximately $10.4 million.

Read the original article in UT-San Diego.

 

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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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