A federal jury has convicted Nadia Kuzmenko, 35, of Loomis, Peter Kuzmenko, 36, Edward Shevtsov, 51, and Aaron New, 39, all of Sacramento, of multiple counts of mail and wire fraud for their roles in a mortgage fraud scheme that cost financial institutions approximately $16 million.
Kuzmenko, Shevtsov and New were also found guilty of money laundering associated with the scheme. Kuzmenko was also found guilty of witness tampering. They will be sentenced by U.S. District Court Judge John Mendez on May 26.
According to evidence presented at the trial by prosecutors from the office of U.S. Attorney Benjamin Wagner, Nadia Kuzmenko, a real estate agent, created falsified loan applications on behalf of straw buyers during the period of 2006-2007. She and her co-defendants were able to obtain loans of more than $26 million for over 30 properties in the Sacramento area.
“The defendants … were important players in a network of fraudsters responsible for millions of dollars in losses associated with dozens of inflated property sales using multiple straw buyers,” says Mr. Wagner.
Co-defendants Vera Kuzmenko and Rachel Siders are still awaiting trial.
Read the original article in the Central Valley Business Times.