California Real Estate Fraud Report

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Archive for the 'Straw Buyers' Category

Bay Area Man Sentenced to 15 Prison in Short Sale Fraud Scam

August 18th, 2017 at 10:24am

Mahendra Prasad, 55, pleaded guilty on May 22, to one count of mail fraud affecting a financial institution in connection with a fraudulent short sale (short sale fraud), according to a Justice Department press release. On August 14, U.S. District Judge Lawrence J. O’Neill sentenced him to 15 months in prison and ordered him to pay $328,000 in restitution to the lending institution that was defrauded.

According to court documents, in 2006, Prasad allegedly submitted falsified documentation to a lender so that he could purchase a property in Sacramento. Following the purchase, he rented the property as Section 8 housing.

In 2013, Prasad completed a short sale of the property to another person, claiming that the sale was “arm’s length, which was a requirement of the lender.

His co-defendants Jyoteshna Karan, Praveen Singh, Sunita Singh and Nani Isaac are going to trial in U.S. District Court in Fresno, on Dec. 11.

Read the original article in News India Times.

Nevada Men Indicted in Fraudulent Short Sale

August 18th, 2017 at 9:55am

Acting U.S. Attorney Steve Myhre for the District of Nevada announced that two men have been indicted in connection with the sale of one man’s property to a family member of his friend (short sale fraud).

The indictment alleges that Dustin Lewis (Henderson, NV) and Brian Sorensen (Las Vegas, NV) conspired to defraud OneWest Bank when Lewis submitted a fraudulent short sale application to the bank to sell the home to a relative of Sorensen. The plan was to prevent a foreclosure so that Lewis could keep possession of the 5,331-square foot, five-bedroom home in Henderson. It is further alleged that Lewis did not disclose to the bank that he and Sorensen had an agreement that Lewis would remain on the property and that later it would be sold back to him.

The case was investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigation (IRS-CID) and the U.S. Department of Interior-Office of the Inspector General. Assistant U.S. Attorney Patrick Burns is the prosecutor.

Read the original article in Mortgage Professional America.

Crime Didn’t Pay for This Short Sale Fraud in Florida

July 20th, 2017 at 4:04pm

Casey Padula, a Charlotte County businessman, received a sentence of nearly five years in prison on charges of conspiring to commit tax and bank fraud.

In addition to transferring almost $2.5 million from Demandblox Inc., his marketing business to offshore accounts in Belize, Padula, 48, committed short sale fraud. He sent a letter to his lender Bank of America saying he could no longer afford his $1.5-million Port Charlotte home. Investigators say Padula gave Robert Robinson, 43, money from Padula’s Belize accounts to “buy” Padula’s home in a short sale at the sweet price of $625,000. Two months after the short sale closed, Robinson transferred title back to Padula for $1.

Lucky Robert Robinson only received five years of probation for his role in defrauding Bank of America.

Casey Padula was ordered to pay a $100,000 fine, restitution of $728,609 to the IRS and $739,459.90 to Bank of America.

Read the original article in NBC2 News.

Sacramento Loan Processor Sentenced for Participation in Widespread Mortgage Fraud

July 7th, 2017 at 11:08am

Loan processor Sergey Shchirskiy, 41, has been sentenced to seven years and 10 months in prison for his role in a mortgage fraud conspiracy that caused losses of $2.7 million to lenders.

Shchirskiy was the target of a joint investigation by the FBI and IRS for white-collar crimes that began as early as 2007. According to U.S. Deputy District Attorney Phillip A. Talbert, Shchirskiy’s role was to recruit straw buyers and to prepare fraudulent loan applications for the straw buyers. He and his 15 co-conspirators took out equity lines of credit and all the properties were foreclosed.

U.S. District Judge Troy Nunley imposed sentence.

Read the press release from the U.S. Attorney for the Eastern District of California.

 

Sacramento Man Sentenced in Mortgage Fraud Csae

June 16th, 2017 at 8:43am

Sergey Shchirskiy, 41, a loan processor in Sacramento, has been sentenced to seven years and 10 months in prison for his role in two mortgage fraud schemes and one tax fraud scheme, according to the U.S. Attorney for the Eastern District of California.

Between April and November 2007, Shchirskiy and his co-conspirators purchased properties with straw buyers and took out home equity lines of credit using fraudulent documents and statements that Shchirskiy created. He also recruited the straw buyers and the loan applications he submitted contained untrue information about the buyers’ income, assets and intent to occupy the houses.

Read the original article in the Central Valley Business Times.

Vallejo Man Gets 10 Years in Prison for Stealing $10 Million

May 11th, 2017 at 3:13pm

Karim Akil, 50, was sentenced in federal court to 10 years in prison for conspiracy to commit mortgage fraud and money laundering.

Akil was first indicted in 2009, entered a guilty plea as part of a plea deal in 2012 but according to prosecutors defrauded more people in 2012 and 2013 while waiting to be sentenced.

In a press release, Michael T. Batdorf, an IRS special agent in charge in the IRS Criminal Investigation Division, said “Mr. Akil enjoyed a lavish lifestyle, with outrageous expenditures. Akil left a path of destruction, from properties that went into default and foreclosure, to straw buyers whose credit was ruined, to an escrow company that went out of business.”

Read the original article in the Fairfield Daily Republic.

 

Husband And Wife Convicted in Fraudulent Short Sale of Property Later Sold to Sacred Heart Academy

April 6th, 2017 at 1:58pm

On March 30, Joseph Atias and Sofia Atias were convicted of bank fraud, conspiracy to commit bank fraud and Medicaid fraud by a jury in federal court in Central Islip, New York.

According to a press release by the U.S. Attorney for Eastern District of New York,

The fraud was designed to, and did, defraud Bank of America of over half a million dollars.  The defendants face penalties of up to 35 years’ imprisonment, the forfeiture of $560,000, and restitution of over $700,000.  After the verdicts, Joseph Atias was remanded to custody pending sentencing by United States District Judge Denis R. Hurley.

The convictions were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.

“Through a web of lies and false documentation, these defendants stole more than half a million dollars from Bank of America and from Medicaid, which they used to line their own pockets,” stated Acting United States Attorney Rohde.  “The fine work of the FBI to bring these defendants to account for these crimes sends a clear message to anyone who contemplates engaging in mortgage fraud or Medicaid fraud: Do not even attempt it, because you will be caught and held responsible.”  Ms. Rohde extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.

The defendants were convicted of bank fraud and conspiracy to commit bank fraud in connection with the sale of property adjacent to Sacred Heart Academy for $925,000, after the defendants had sold the property in a short sale for $480,000 to discharge their mortgage debt.  In the short sale process, the defendants and a co-conspirator, an attorney who pleaded guilty and testified against the defendants at trial, concealed the offer from Sacred Heart Academy from the Bank of America.  In the short sale process, the defendants submitted a fraudulent contract of sale and other documents with false statements to Bank of America, and obtained approval of a short sale, wherein the proceeds from the sale of the property were less than the total amount of the mortgages on the property.  The defendants submitted these documents to Bank of America, falsely representing that there were no funds to pay the mortgages when, in fact, the defendants knew that Sacred Heart Academy, a high school in Hempstead, New York, had offered to buy the property for an amount sufficient to cover the mortgages on the property.  To accomplish the fraudulent short sale scheme, the defendants used a relative as a straw buyer of the property to create the appearance of an arms-length sale.  Shortly after that sale, the defendant’s straw buyer sold the property to Sacred Heart Academy for approximately half a million dollars in profit.

Former Roseville Real Estate Agent Sentenced to Prison for Forging Documents

March 2nd, 2017 at 10:54am

Alla Samchuk, 45, who was previously a licensed real estate agent, has been sentenced to nine years and six months in federal prison for mortgage fraud, identity theft and obstruction of justice. She was convicted last August.

According to prosecutors, from 2006 through 2008, Samchuk concocted a mortgage fraud involving two homes in Roseville and one in El Dorado Hills. Because she was unable to qualify for the loans, so she found straw buyers to apply for the loans in their own names. The applications contained false statements regarding income, employment and assets, including falsely representing that the straw buyers would occupy the homes.

Judge Garland Burrell Jr. of the U.S. District Court for the Eastern District of California in Sacramento was the trial judge. He imposed the longer sentence because Samchuk had threatened a witness not to report her crimes.

You can read more about the history of the case by going to the U.S. Government Publishing Office.

Read the original article in the Sacramento Business Journal.

Stockton real estate agents sentenced in mortgage fraud

October 28th, 2016 at 6:23am

Lillian Marquez, 41, of Stockton, was sentenced by U.S. District Judge John Mendez to three years and one month in prison for conspiring to commit mortgage fraud, according to Acting U.S. Attorney Phillip Talbert. Her co-defendant, Michael Keatts, 59 received the same sentence in September.

Marquez and Keatts operated Colonial Home and Business Services in Stockton and were licensed real estate agents. They supplied false information and documents to lenders on behalf of their clients in order for the clients to receive loans.

They also helped other clients commit short sale fraud by selling those clients’ homes to straw buyers, while the clients remained in the homes.

Read the original article in the Central Valley Business Times.

 

Roseville real estate agent convicted in mortgage fraud case

August 4th, 2016 at 9:08am

Real estate agent Alla Samchuk, 45, has been found guilty of six counts of bank fraud, six counts of making a false statement to a financial institution, one count of money laundering and one count of aggravated identity theft, according to a press release by the U.S. Attorney’s Office for the Eastern District of California.

Court documents revealed that from 2006 through 2008 Samchuk operated a mortgage fraud scheme involving three properties in the Sacramento area, specifically Roseville and El Dorado HIlls. Unable to qualify for a loan to make the purchases herself,  Samchuk employed the services of straw buyers to apply for the loans.  She caused the submission of loan applications containing false representations of income, employment, assets, and a false indication that the straw buyers would occupy the homes as their primary residence.

A second objective of the scheme was to obtain HELOC (home equity line of credit) funds. According to evidence at trial, on two of the properties, Samchuk diverted or attempted to divert HELOC funds to her own benefit. Samchuk caused the HELOC loans to fund by submitting false statements and documents to the lender regarding the qualifications of the straw buyers.

Turning against her own straw buyers, Samchuk filed an application for a HELOC on one of the properties without the straw buyer’s knowledge or consent (HELOC fraud). To obtain the HELOC, she forged the signature of the straw buyer on a short form deed of trust that she caused to be notarized and recorded. The stated purpose of the HELOC was home improvement, but once the line of credit was funded, Samchuk quickly diverted all of the funds to her own use, spending the proceeds on a Lexus and the repayment of a substantial personal debt.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Andre M. Espinosa prosecuted the case.

 

© Copyright 2007-2017 Monique Bryher

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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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