Woman Commits Loan Fraud Against Mother-in-Law
A loan agent and her friend have been charged by prosecutors in Stanislaus County with defrauding the friend’s elderly mother-in-law out of her home’s equity and thousands of dollars in annuities, resulting in her home being foreclosed. Between the two of them, Susan Faustino, 49, and Diolinda M. Machado, 50, are scheduled to be arraigned April 11 in Stanislaus County Superior Court facing a combined more than 40 charges, including grand theft, obtaining property under false pretenses, forgery and making false financial statements.
Using her mother-in-law Mary Machado’s home as collateral, Diolinda began taking out loans in January 2003 using her mother-in-law’s home as collateral; the loans were in Mary Machado’s name. The home had originally been paid off in 1996. Diolinda Machado refinanced the home three times between 2004 and 2006 and then obtained a reverse mortgage in April 2007. The prosecutor’s affidavit states that Mary Machado’s signature was on the original loan documents and were notarized by Susan Theresa Van Nieuwe, a name Faustino used. However, Faustino acted as the loan officer for one of the refinances and allowed Diolinda to falsely state her mother-in-law’s income as $3,875.
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