San Diego Mansions Used in $50 Million Mortgage Fraud Scheme

A real estate broker and a senior executive at a real estate investment company have been indicted wire and mail fraud conspiracy, wire fraud, mail fraud, aggravated identity theft and criminal forfeiture in connection with a multi-million dollar mortgage fraud scheme.

According to a press release by the U.S. Attorney’s Office for the Southern District of California, Peter Cash Doye, a senior executive at the real estate investment firm known both as Conix and Variant Commercial Real Estate, and Raquel Reid, a licensed real estate broker and notary public, allegedly conned lenders into providing loans for four multi-million dollar mansions in La Jolla and Del Mar.

Court documents indicated that Doye and Reid used numerous forged documents to trick the lenders into believing the loans had been paid off in order to obtain new loans against the properties.

Co-defendants Courtland Gettel, and an Arizona attorney, Jeffrey Greenberg, previously pleaded guilty to their roles in the scheme.

The mansions had been represented to the lenders as rental and investment properties but were lived in by Doye and Gettel and their families.

Read the original article in HousingWire.

US-DOJ Sues Former Deutsche Bank Trading Executive Over Role in Mortgage Fraud

United States Department of Justice is suing the former head of subprime mortgage trading at Deutsche Bank for “systematically and intentionally” lying about the quality of subprime mortgages that backed nearly $1.5 billion in mortgage-backed securities that led to the crisis in the real estate market.

It’s rare for the government to pursue an individual for mortgage fraud; I know of no MBS (mortgage-backed securities) traders who have been prosecuted.

An announcement from the US Department of Justice, Paul Mangione, the former Deutsche Bank head of subprime trading, allegedly “engaged in a fraudulent scheme to misrepresent the characteristics of loans backing two residential mortgage-backed securities that Deutsche Bank sold to investors that resulted in hundreds of millions of dollars in losses.”

Read the original article in Housing Wire.

 

North San Luis Obispo County Lenders Accused of Scamming Investors Headed to Trial

Two years after Rodney Jarmin and Tammy Jordan, former owners of Real Property Lenders, could have accepted a deal two years ago that would have kept them out of jail and required minimal restitution to the real estate investors they allegedly defrauded.

But Jarmin, 76, and Jordan, 65, rejected the deal and now they’re headed to trial.

Real Property Lenders acted as a middleman between investors who put up their funds to be used as hard money loans to developers. These investors were promised 12% annual interest payments.

Rodney Jarmin and Tammy Jordan were charge in March 2011 by prosecutors who alleged they didn’t disclose to the investors that the builders had defaulted and that earlier investors had not been paid their dividends. This is despite documents filed with the California Department of Corporations that Real Property Lenders had reported over $55 million in outstanding real estate loans in 2007.

Here is the web page prosecutors created to keep the investors notified of developments in the case.

Read the original article in The San Luis Obispo Tribune.

Man Charged with Stealing Identities, Forging Real Estate Documents

Vu Hoang Ho has been charged the the L.A. County District Attorney’s Office with stealing the identities of deceased persons or “living elderly victims.” He allegedly forged their names on real estate documents and recorded them with the L.A. County Recorder’s Office so that he could acquire them (title fraud), says the Sheriff’s Information Bureau.

Ho then tried to re-sell the properties to buyers who were unaware of what had transpired.

The case was investigated by the Real Estate Fraud Unit of the Sheriff’s Fraud & Cyber Crimes Bureau.

Read the original article in the San Gabriel Valley Tribune and MyNewsLA.com.

Four Phoenix Family Members Sentenced For Real Estate Fraud and Tax Evasion

All in the Family – parents and two sons go to prison for operating large-scale real estate fraud scheme.

“PHOENIX – Yesterday, Senior U.S. District Judge Neil V. Wake sentenced Daphne Iatridis and her husband, Arthur Telles, both 59, to 30 months in prison and ordered the couple to forfeit 26 fraudulently purchased properties to the United States. Both had previously pleaded guilty to conspiracy to commit mail and wire fraud and tax evasion. The couple’s sons, Brendyn Iatridis and Spenser Iatridis, also pleaded guilty to related crimes and were sentenced to 10 months in prison and probation, respectively.”

Read the full press release by the U.S. Attorney for the District of Arizona.