Brothers Billy, Benny and Johnny Khounthavong are charged with conspiracy to make false statements to two banks in a mortgage fraud scheme known as a “buy-and-bail” that is being heard by a federal jury.
Federal prosecutors allege that the Khounthavongs submitted false reports to Flagstar Bank in order to purchase a 3,900 sq. ft. home in Corona. A second allegation is that the three lied to Bank of America and walked away from another property they owned in Chino in which they were underwater, causing losses of $340,000 from the unpaid mortgage.
The Khounthavong brothers are currently on leave from the Los Angeles Sheriff’s Department and are free on bond.
Read the original article in the Claremont-La Verne Patch.