California Real Estate Fraud Report

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15
Oct

Escrow Officer Pleads Guilty in Southern California Mortgage Fraud, Escrow Fraud Scheme

Donna Demello, a former escrow officer at Stewart Title in Milpitas, has pleaded guilty in federal court in to conspiracy to commit wire and mail fraud.

Demello played an instrumental role in a mortgage fraud orchestrated by Delbert McConville in which straw buyers were paid $5,000 – $10,000 for the use of their names and credit histories so that McConville could purchase hundreds of condominiums in Southern California. In order to facilitate the fraud, fraudulent loan applications were submitted regarding the straw buyers; Demello was the gatekeeper who approved about 80 loans. Further, Demello admitted that the huge marketing fees paid to McConville on each transaction – about $150,000 – were concealed by her deliberately creating two HUD-1 final settlement statements. The phony version that did not show the fraudulent fees was sent to the lender, whereas the accurate one was sent to the sellers of the condominiums.

The corporate entities either owned or controlled by Delbert McConville were Diamond House Development, La Mirage HA, Emerald Park Housing, Hi Investments, Kearny Mesa Townhomes LLC, Stonemark Asset Portfolio, Sunset Drive Media, 3 Mac Asset Portfolio, 3 Mac Development Corporation, and Sapphire Park House.

Read the full article in the Mortgage Relief Project.

© Copyright 2007-2018 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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