California Real Estate Fraud Report

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30
May

Sacramento Real Estate Agent Convicted for Mortgage Fraud

A Sacramento area real estate agent who conspired with two men and a group of closely-related straw buyers to deceive lenders (loan fraud, mortgage fraud) has been convicted of 13 counts of mail fraud after a six-day trial.

Behrooz Badie, 53, the broker and former owner of Above and Beyond Realtors, represented four straw buyers in the purchase of 16 homes. The straw buyers were procured by Derek Davis and were his ex-wife Harriette Davis, his girlfriend Kristina Harvey, his friend William Emmons and a creditor named Alan Bolton. The straw buyers never intended to occupy the properties, although they so indicated on their loan applications, because the properties were ultimately to be purchased by Derek Davis.

The mortgage broker for 15 of the transactions was Dino Rosetti. In each instance, the financial portrait of the borrowers (the straw buyers) was presented by overstating their incomes and understating their liabilities (loan fraud, mortgage fraud).

The creative part of this mortgage fraud conspiracy is that Behrooz Badie convinced the listing agents for the properties in which his buyers’ offers had been accepted, to alter their listings and increase the price above market value. This was done so that a phony surplus was created for the benefit of Derek Davis. Addenda were prepared – but never disclosed or shown to the lenders or their appraisers – to indicate that the surplus funds were for repairs or property improvements.

Derek Davis and Dino Rosetti have both previously pleaded for their part in this conspiracy and the real estate licenses of Badie and Rosetti have been revoked. No word on whether the listing agents have been disciplined by the California Department of Real Estate (DRE) or if any of the straw buyers have been charged. How these inflated home prices got approved by the appraisers is also worth exploring.

Read the original article in the Central Valley Business Times.

© 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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