Brothers and former real estate agents Adel and Atef Afkarian were sentenced to prison terms for operating a fraudulent “debt elimination” scheme as well as a complicated short sale fraud that ripped off lenders in the San Diego area.
Adel Afkarian was sentenced to 18 months by U.S. District Judge John Houston and Atef Afkarian received 13 months. The judge ordered the brothers to pay more than $5.5 million in restitution to their victims. Their licenses had previously been revoked by the California Bureau of Real Estate.
After identifying underwater homeowners (including themselves), the Afkarians recorded fraudulent deeds (title fraud) that showed the loans on the properties had been extinguished. They then sold the properties to unaware buyers. The original mortgage lenders, who did not know about the fraudulent title documents, were not paid. This included their own $1.4 million mortgage.
At the same time, the Afkarians conspired to transact fraudulent short sales for underwater clients through a simultaneous “double escrow” scheme involving the use of straw buyers.
Read the original article in Fox 5 News.