California Real Estate Fraud Report

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President of Discovery Sales Arrested in “Builder’s Bailout” Case

Ayman Shahid, 38, the president of Discovery Sales, was arrested and charged with conspiracy to commit bank fraud and 17 individual bank fraud counts.

Shahid, of Danville, is the seventh employee of Seeno Construction to be indicted in the case, which began in 2010 when FBI and IRS agents raided the firms Port Chicago Highway headquarters and removed boxes of evidence.

Discovery Sales is the selling  company for Discovery Homes and Seeno Homes. The Seeno family has a long history of construction in the Bay Area and in the past has been fined for “environmental improprieties.”

In Shahid’s case, federal prosecutors allege that, in order to keep sales prices of Seeno homes up during the financial downturn, provided large financial incentives to unqualified homebuyers. Prosecutors further allege that the incentives were concealed from both banks and appraisers (appraisal fraud) so that they loan would be approved (loan fraud, mortgage fraud). Because many of the buyers were unable to afford the loans, more than $154 million in losses was realized by the banks when the homes were either foreclosed or sold as short sales.

Two Discovery Sales employees pleaded guilty in this case last year and have agreed to cooperate with prosecutors.

Read the original article in the Mercury News.


© 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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