California Real Estate Fraud Report

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Guilty Plea in $11 Million Mortgage Fraud in Sacramento

The fat lady has sung for a Sacramento man, who has pleaded guilty to orchestrating a mortgage fraud scheme involving $11 million.

Derek Davis, 62, also known as Terry McCullough, admitted his involvement in the scheme at a hearing last week in U.S. District Court, according to federal prosecutors. Davis pleaded guilty to charges of mail fraud and structuring currency transactions to evade reporting requirements. Charges are still pending against his alleged accomplice, Dino Rosetti.

The 2005 indictment said Davis and Rosetti arranged for buyers to lie on their loan applications about their incomes and jobs. Davis went so far in one instance to loan a buyer $45,000 so her bank account would look healthy to lenders. The loan broker was 1st Option Mortgage, a firm operated by Dino Rosetti. Calorneva Land Company, a firm controlled by Davis, was the holding company through which the excess loan moneys were funneled.

The case was investigated by the FBI, Internal Revenue Service, state Department of Real Estate and El Dorado County District Attorney’s Office.

Read the Full Article in The Sacramento Bee.

© 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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