In the following press release The San Bernardino County District Attorney’s Office announced it has filed charges against Gregory Craig Sandoval, 25, and Souha Nabil Traboulsi, 40, both of Los Angeles, for conspiracy to commit mortgage fraud against San Bernardino County residents. The on-going investigation into the actions of Eric Pony and his companies, Lifetime Financial, Nations Mortgage, and Green Leaf Lending, led to the discovery of evidence linking Sandoval and Traboulsi to the scheme.

On July 8, 2008, District Attorney’s Investigators from the San Bernardino County Real Estate Fraud Unit served a search warrant on Traboulsi’s Valley Village business, “Modern Accounting and Services.” Arrest warrants were issued in conjunction with the investigation, and investigators attempted to arrest Traboulsi at her business and residence of record. She ultimately surrendered herself to the West Valley Detention Center on July 9, 2008.

Sandoval, a longtime former employee of Eric Pony at Lifetime Financial, surrendered himself to bailiffs at the San Bernardino County Courthouse on July 14, 2008. Both are currently in custody at the West Valley Detention Center pending their next court dates. Bail for Sandoval was set at $1,000,000 and $500,000 for Traboulsi.

In the following press United States Attorney McGregor W. Scott announced today that JEAN L. GARCIA, 50, of Auburn, California, was arrested on federal felony charges of wire fraud and money laundering. A criminal complaint was filed and an arrest warrant was obtained yesterday.

This case is the product of a joint investigation by the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation. According to Assistant United States Attorney Matthew Stegman, who is prosecuting the case, the complaint alleges that the defendant made false statements in a loan application for the purpose of obtaining a loan to refinance the house in which she and Mario Garcia lived, and then engaged in a monetary transaction in these criminally derived funds.

If convicted, the maximum penalty for wire fraud is twenty years in prison and a fine of up to $250,000, and for money laundering is ten years in prison and a fine of up to $250,000 or twice the value of the money laundered, whichever is greater. However, the actual sentence will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables, and any applicable statutory sentencing factors.

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Resources:
Press Release

In the following press release Michael Ramos District Attorney for San Bernardino County, CA announced that on Thursday, October 18, Investigators from the his Real Estate Fraud Unit and Special Response Team (SRT) assisted several other law enforcement agencies in the service of Gang Association search and arrest warrants in the city of San Bernardino.

District Attorney Investigators assigned to the warrant sweep operation recognized a subject wanted by the Real Estate Fraud Unit and conducted a traffic stop near the corner of 5th Street and “F” Street in San Bernardino. Arrested at the stop was Jeanette Amaya, 49, who is suspected of using a forged deed to steal a residence in the 1900 block of North Western in San Bernardino. Investigators then served a search warrant at that residence where gang memorabilia and suspected narcotics, believed to be cocaine, were seized.

District Attorney Investigators then went to a number of locations in the community of Muscoy before locating and arresting another subject wanted in the suspected theft of the San Bernardino home. Investigators arrested Benny Garcia Amaya, 61, at G & G Auto Wrecking, 19407 Cajon Blvd. in Devore.

Jeanette Amaya was booked into the Sheriff’s Central Detention Center in San Bernardino and Benny Amaya was transported and booked into the West Valley Detention Center in Rancho Cucamonga, CA. Both suspects will be arraigned in San Bernardino Superior Court on October 19 and are being held in lieu of $600,000.00 bail.

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Press Release

In the following press release Miami-Dade County Mayor Carlos Alvarez announced the first round of arrests warrants for criminals dealing in mortgage fraud schemes brought in 11 people this week with two suspects still at large. At a press conference this morning Mayor Alvarez presented the cases where these individuals are suspected of committing mortgage fraud.

“Mortgage Fraud affects all of us as artificially inflated home values increase taxes making it unaffordable to live here,” said Mayor Alvarez. “On the flip side, when banks begin to foreclose on fraudulent mortgages and sell these properties far below their original value, the County’s tax base lowers. This may affect the level of services we are able to offer.”

To combat the problem, Mayor Alvarez created a Mortgage Fraud Task Force. The Task Force pools together various agencies and resources for a joint effort against mortgage fraud. This includes the Miami-Dade Police Department, Miami-Dade County State Attorney’s Office, Florida Attorney General’s Office, Florida Department of Law Enforcement, State of Florida Department of Financial Services, FBI, U.S. Attorney’s Office, Office of the Treasury and others.

Mortgage fraud is a substantial problem in our County with more than 200 reported incidents of mortgage fraud and an estimated $50 million in losses to lenders and other victims. The recent Florida State Statute 817.545 went into effect on October 1, 2007, making it easier to crack down on mortgage fraud, making all parties involved in Mortgage Fraud subject to prosecution.

Mortgage Fraud Task Force Chair and Miami-Dade Police Department Chief Counsel Glenn Theobald said, “Committing mortgage fraud crimes in Miami-Dade just got a lot harder as we have law enforcement officials, prosecutors, lending experts and others bringing all resources to the table to ensure this mortgage fraud crime does not pay.”

“Protecting our citizens from mortgage fraud is a priority for the Florida Attorney General’s Office and the cooperative efforts of local, state and federal law enforcement and prosecution will be an important step towards shutting down these criminal operations,” added Florida Attorney General Bill McCollum.

Officials say in the coming months more fraudulent mortgage brokers, title agents, attorneys, appraisers and others will be brought to justice. Through the Mortgage Fraud Task Force, a concerted effort is being made and additional resources are being brought together to help put a stop to this problem.

Anyone who suspects deceitful mortgage practices is encouraged to contact Miami-Dade County’s Economic Crime Bureau at (305) 994-1000.

Pictured above from left to right: Nancy Hogan, Chair, Mortgage Fraud Task Force Education Committee; Miami-Dade County Commissioner Katy Sorenson; Miami-Dade County Mayor Carlos Alvarez; Glenn Theobald, Chairman, Mortgage Fraud Task Force; and Sergeant Richard Davis, Miami-Dade Police Department. (Photo by Ricardo Manuel Garcia)

NBC 6 News reports that amongst those arrested were realtor Nester Camacho, closing attorney, David Rodriguez; his secretary, Monica Zulauga; and mortgage broker, Jose Delgado, who police said fled to Colombia.
CBS 4 News reports that The following people were also arrested:
Mariana Navarrete, owner of three investment companies registered in South Florida
Xavier Abelardo, former husband of Navarrete who worked as a mortgage broker
Javier Abelardo-Navarrete, who worked as a seller and broker’s agent
Luis Navarrete, was a closing agent.
Also implicated in the scheme is Navarrete’s daughter-in-law, Teresa Guillen, and Jose Rodriguez, who is still at large

The Miami Herald reports on others arrested in a separate case, police said Fernando Prado, 47, a fake buyer — so-called straw buyers lend their identity and credit history to pretend to buy a home — worked with Tomas Tamayo, 39, a mortgage broker and Damaris Vallin, 36, a title agent, to allegedly pull $75,000 in cash from a fraudulent closing. The house is now in foreclosure. Police would not disclose the address of the property.

Resources:
Press Release
NBC 6 News Video Report on the arrests
Previous NBC 6 News report on mortgage fraud
NBC 6 News article
CBS 4 News article
Miami Herald Article

In the following press release MICHAEL J. GARCIA, United States Attorney for the Southern District of New York, and MARK J. MERSHON, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrests of Michael Hershkowitz and Ivy Woolf-Turk in connection with an elaborate scheme to defraud approximately 70 individuals of over $27 million. As alleged in the Complaint filed in Manhattan federal court:

HERSHKOWITZ and WOOLF-TURK, working through a Manhattan real estate development company, The Kingsland Group, Inc., and related entities (collectively, “The Kingsland Group”), fraudulently induced approximately 70 individuals (the “Investor Victims”) to loan them, in the aggregate, over $27 million, purportedly to fund the renovation of approximately sixteen multi-family apartment buildings located in upper Manhattan.

As part of the fraud, HERSHKOWITZ and WOOLF-TURK falsely represented that the Investor Victims would hold, as collateral for the loans, interests in bona fide first mortgages in the various properties in which they thought they were investing. In fact, the Investor Victims did not hold recorded, first mortgages in the properties. The defendants have defaulted on a number of the loans by failing to make scheduled payments of both interest and principal. To date, the Investor Victims’ losses exceed $27 million.

Beginning in 2003, HERSHKOWITZ and WOOLF-TURK commenced a series of projects to renovate approximately sixteen multifamily apartment buildings in upper Manhattan. The defendants purportedly planned to rent the renovated apartments or ultimately, to refinance, or sell the properties at significantly higher prices. Supposedly to raise an aggregate of approximately $78 million they needed for the renovation projects, the defendants, from September 2003 through March 2007, borrowed a total of approximately $27 million from the Investor Victims, and approximately $51 million from various other investors, including Intervest Mortgage Corporation and Dominion Financial Corporation (collectively, the “Financial Institution Investors”).

The loan agreements with the Investor Victims typically required that The Kingsland Group make interest payments on a monthly basis and that the principal would come due after a period of between 18 months to three years.

In exchange for the loans from the Investor Victims, HERSHKOWITZ and WOOLF-TURK promised above-market rates of return (typically between 11.5% and 13.5%), and represented that the Investor Victims would hold, as collateral, together with one or more other investors, percentage interests in bona fide first mortgages in the particular properties in which they were investing. As part of their effort to obtain financing, HERSHKOWITZ and WOOLF-TURK provided the Investor Victims with mortgage documentation, which falsely represented that Investor Victims held first mortgages in the particular properties. The defendants also provided the Investor Victims with fraudulent copies of title insurance policies for the properties in which they were investing.

The actual mortgages registered with New York City’s Automated City Registration Information System (“ACRIS”) show that the recorded first mortgages in the properties in fact are held solely by other investors (including the Financial Institution Investors) from which HERSHKOWITZ and WOOLF-TURK had obtained financing, and not by the Investor Victims. Moreover, title insurance policies that ERSHKOWITZ and WOOLF-TURK provided to the Investor Victims were never issued by a title insurance company in favor of the Investor Victims, but instead appear to be doctored versions of policies issued in favor of other beneficiaries.

The principal for the first of the loans came due on April 15, 2005. At that time, HERSHKOWITZ and WOOLF-TURK failed to repay the approximately $1,300,000 then due to the Investor Victims. From April 15, 2005, through May 1, 2007, six other loans to the Investor Victims, totaling approximately $7.8 million, also came due and were not paid. From September 2003 until July 2007, HERSHKOWITZ and WOOLF-TURK, through the Kingsland Group, made the required interest payments to the Investor Victims as they came due, but beginning on or about July 1, 2007, HERSHKOWITZ and WOOLF-TURK failed to make a total of over $200,000 in interest payments due to the Investor Victims.

After HERSHKOWITZ and WOOLF-TURK failed to repay loans when they were due, certain of the Investor Victims raised questions concerning the mortgages they believed they held on the subject properties. HERSHKOWITZ and WOOLF-TURK then took elaborate, affirmative steps to conceal the fraud, continue their scheme, and avoid foreclosure on the loans. Among other things, HERSHKOWITZ and WOOLF-TURK provided certain of the Investor Victims with fraudulent ACRIS recording sheets, which falsely state that the Investor Victims hold recorded mortgages on the subject properties.

The properties listed in the Complaint are:
2301-2303 2nd Ave
249 E. 118^th St.
528 W. 152nd St.
531 W. 179th St.
283 Audubon Ave
503-505 W. 176th St
70-72 Pinehurst Ave.
2180-82 Amsterdam Ave.
507 W.184th St
559 W. 183^rd St
704 W. 180th St.
234-236 E. l l 8t h St.
463, W. 15^th St. 
465, W. 15^th St. 
467 W. 15^th St.
510-516 W. 184th St
500 W. 190th St.
516-520 W. 18Eth St.
515 W. 184^th St
520-524 W. 184th St

HERSHKOWITZ and WOOLF-TURK are charged with conspiracy to commit mail fraud and wire fraud. If convicted, the defendants face a maximum sentence of 20 years’ imprisonment. HERSHKOWITZ, 51, resides in Manhattan and Atlantic Beach, New York. WOOLF-TURK, 51, resides in Port Washington, New York.

The defendants will be presented later today before United States Magistrate Judge HENRY B. PITMAN. Mr. GARCIA praised the investigative efforts of the FBI in this case. This investigation is being handled by the Major Crimes Unit of the United States Attorney’s Office. Assistant United States Attorneys MARCUS A. ASNER and HARRY A. CHERNOFF are in charge of the prosecution.

The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.

Resources:
Press Release
Criminal Complaint

The United States Attorney for Southern New York today announced the arrest of Alexander Kaplan, a Brooklyn attorney, in a complaint related to the superseding indictment issued yesterday against Lipkin and 25 other defendants

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In the following press release the San Bernardino (CA) District Attorney announced that investigators from the DA’s Real Estate Fraud Unit arrested Robert Lee Freeman, 55, of Huntington Park on Thursday, June 14, 2007. Mr. Freeman was arrested outside his business in the 3400 block of Florence Avenue, Huntington Park, Ca. Freeman was arrested for three felony charges including forgery and filing forged documents with the San Bernardino County Recorder’s Office.

In May 2004, Mr. Freeman allegedly forged the victim’s signature to a grant deed to property, transferring the San Bernardino County property from the victim to himself.

Freeman was booked into the West Valley Detention Center located in Rancho Cucamonga. His bail was set at $100,000.

In the following press release the San Bernardino (CA) District Attorney announced that Brenda Cortez, 34, of Menifee, surrendered to Investigators from the San Bernardino County District Attorney’s Real Estate Fraud Unit on Friday, May 25, 2007. Cortez is a commissioned Notary Public, and was arrested for one count Government Code 8228.1 - Willful failure to perform a Notarial duty.

In May 2006, Cortez notarized a Grant Deed affecting real property and failed to obtain a thumbprint from the person requesting the notarization in her notary journal, as required by Government Code 8206(G). The affected property was located in the city of San Bernardino, CA. It was later determined that the Grant Deed was forged, and recorded with the County recorder’s Office in San Bernardino.

Cortez was booked into the Sheriff’s Central Detention Center located in San Bernardino. Bail was set at $15,000.