HB Mortgage Fraud Results in Harsh Federal Sentence

The Orange County Register reported a Huntington Beach man and a female co-conspirator from Downey were sentenced to multiple years in federal prison for their role in a real estate fraud scheme which they operated from May 2003 through November 2005. The $12-million fraud targeted hundreds of southern California homeowners facing foreclosure. Victimized homeowners were identified via a computer database list of homes facing foreclosure.

As part of the scheme, the defendants would contact the homeowners and promise to refinance their distressed loans. Knowing they were unable to perform to their promise, they submitted loan applications from non-existent potential buyers of the property. The loan applications were funded as purchase money mortgages. Some of those mortgage money loans were skimmed and kept by the defendants. As a result, lenders realized actual cash losses when the “straw buyers” did not make any loan payments. The homeowners lost title to their homes when the loans fell into default.

Much of the illegally obtained money was used for personal expenses, such as the purchase of a Lamborghini, a high performance sports car, and illegal drugs.

As an increasing number of complaints are investigated, more mortgage fraud is being discovered. Accordingly, mortgage fraud prosecutions are expected to increase due to the increase in fraudulent activity in recent years due to the increased lending activity of the mortgage banks. Mortgage fraud is a federal crime and will be investigated by the FBI. Sentencing for mortgage fraud is also extremely harsh. Often, a sentence the most severe mortgage fraud is more severe than that of some violent crimes, which often carry shorter prison sentences.

If you have been arrested for mortgage fraud, or if you are currently under investigation for engaging in fraudulent mortgage activities, you need the assistance of a qualified attorney familiar with mortgages and the federal criminal system. You NEED the assistance of counsel BEFORE you speak to the authorities! If they have already contacted you it is not too late. Contact the federal criminal defenders at Houston Law of California TODAY! DO NOT WAIT! It is what you say that will do more damage to your defense than any other issue. Call Houston Law of California now at 714-841-3921 or email at info@HBLawyers.net.