In the following press release from the San Bernardino County District Attorney on August 22, 2008 it was announced that in May 2008, felony charges were filed against John Christopher Foster, 50, formerly of Rancho Cucamonga, involving several felony counts of Real Estate Fraud related offenses. In 2005 and 2006, Foster forged the victim’s signature on a Grant Deed and Deeds of Trust for property located in the city of Fontana. Subsequently, Foster sold the Fontana residence for $675,000.

Investigators from the San Bernardino County District Attorney’s Real Estate Fraud Unit found that Foster had fled California in January 2008. On August 14, 2008, Illinois State Troopers arrested him while driving through Douglas County, Illinois. Foster was arrested on the outstanding felony warrant, which included charges of: Forgery, identity theft, and filing forged documents
with the County Recorder’s Office.

On Wednesday, August 20, 2008, DA Investigators from the San Bernardino County District Attorney’s Real Estate Fraud Unit extradited Foster, via airplane, back to California from the state of Illinois. Foster was booked into the West Valley Detention Center in Rancho Cucamonga. His bail is set at $675,000.

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 release United States Attorney Karen P. Hewitt announced the indictment and arrest of Micah Bachman, also known as Tyler Jefferies, of Lake Forest, California, for bank fraud, false statements on loan applications, false use of a social security account number, money laundering, false statements to a federal officer, and aggravated identity theft. The 18-count indictment was handed up by a federal grand jury sitting in San Diego on March 11, 2008. Mr. Bachman was arrested today, pursuant to a bench warrant issued in connection with the indictment.

According to the indictment, Mr. Bachman created the alter ego of “Tyler Jefferies” and over time built a credit profile for that identity based upon a social security number stolen from a child in Kentucky. Among other things, the indictment alleges that Mr. Bachman created a fake New Mexico driver license for Jefferies and used it to obtain valid driver’s licenses for Jefferies in Utah and California. Using the Jefferies identity, Bachman obtained credit cards and loans and made enough payments, by moving money between and among these accounts and other accounts, to manufacture a credit history and good credit rating for Jefferies.

Then, as charged in the indictment, Bachman obtained a primary and secondary mortgage loan in the total amount of $960,000 from Chase Bank and Flagstar Bank to purchase a residence in Lake Forest, California, through a mortgage broker in San Diego. All of the loans used to create the Jefferies identity and the mortgage loans are in default. Finally, according to Assistant United States Attorney Mitch Dembin, who is prosecuting the case, in connection with the investigation of another series of loans, which resulted in the filing of charges against former NFL player Benjamin Coleman, Mr. Bachman used the identity of a third person, whose identity was stolen and used in that scheme, in discussions with the United States Secret Service in an attempt to deflect the investigation away from him and his associate, Mr. Coleman. Mr. Coleman has been charged separately in Criminal Case No. 07cr3246-DMS pending in United States District Court in San Diego.

This case was investigated by Special Agents of the United States Secret Service, the Internal Revenue Service - Criminal Investigation Division and Detectives of the San Diego Police Department under the auspices of the San Diego Regional Fraud Task Force.

Mr. Bachman will appear before the Honorable Anthony J. Battaglia, United States Magistrate Judge for arraignment and a bail hearing on March 13, 2008.

In the following press release United States Attorney Joseph P. Russoniello announced that Cheryl Hernandez Camus of Concord, California made her initial appearance in federal court in San Francisco on April 22, 2008 before United States Magistrate Judge James Larson. A federal grand jury in San Francisco had previously indicted Ms. Camus on April 8, 2008 on charges of mail and wire fraud in connection with a Ponzi scheme. Ms. Camus is scheduled for her next appearance in federal court in San Francisco on April 29, 2008 before United States Magistrate Judge James Larson and on May 5, 2008 before United States District Judge Marilyn Hall Patel.

According to the indictment, Ms. Camus, 36, is alleged to have made a number of misrepresentations about a money lending investment, where she promised fixed returns and the return of the principle investment within a fixed period of time. The indictment alleges that Ms. Camus made one or more of the following material false representations and promises in order to induce the investor to give her money:

• The investor’s money would be used to help finance real estate transactions, such as payment of closing costs or down payment;
• The investor’s money would be used to pay medical costs;
• The investor would receive a fixed monthly interest payment on the investment;
• The investor would receive the return of the principle investment amount within a fixed period of time;
• The loans would involve “really no risk.”
• Ms. Camus screened the borrowers to ensure that money was only lent to borrowers who had the ability to repay;
• Ms. Camus had been conducting similar transactions for three years and the returns had been “awesome.”
• Ms. Camus would personally guarantee the investment;
• The investment would be secured by a legitimate deed of trust.

Instead, according to the indictment, Ms. Camus used the money she obtained from investors for personal expenses and to pay back prior investors.

The maximum statutory penalty for each count of mail fraud, in violation of 18 U.S.C. § 1341, and wire fraud, in violation of 18 U.S.C. § 1343 is 20 years in prison, and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Christina Hua is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Wilson Wong. The prosecution is the result of a two year investigation by the Federal Bureau of Investigation.

In the following press release United States Attorney McGregor W. Scott announced today that JOHN NGO, 27, of Dublin, California, pleaded guilty today before United States District Judge William B. Shubb to lying under oath before a federal Grand Jury in connection with an on-going mortgage fraud investigation. The case is the product of an extensive investigation by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Several other individuals have been indicted in connection with this investigation and those charges remain pending. See United States v. Iftikhar Ahmad, et al., 2:07-CR-0386 WBS.

According to Assistant United States Attorneys Benjamin B. Wagner and Courtney J. Linn, who are prosecuting the case, from approximately September 2001 through May 2006, NGO worked as a Senior Loan Coordinator at Long Beach Mortgage, a subprime lender of residential real property that is now an operational subsidiary of Washington Mutual, F.A. In his capacity as Senior Loan Coordinator, NGO was responsible for, among other things, validating and verifying loan application information (including employment information) submitted by or on behalf of home loan applicants.

In September 2007, NGO testified under oath before a Grand Jury investigating a wide-ranging mortgage fraud scheme in the San Joaquin County area. He was asked whether a particular mortgage broker who referred loan applications to Long Beach Mortgage during the time that NGO worked there had given NGO any money. NGO falsely testified that the broker had not given him any money. In fact, records subsequently obtained from Bank of America show that between July 2003 and March 2007, defendant NGO received approximately $100,000 in checks and bank transfers from accounts controlled by the mortgage broker. NGO admitted that most of the payments he received from the broker were payments made for ensuring that fraudulent loan applications referred to Long Beach Mortgage by the mortgage broker’s firm were processed and funded.

As part of his plea, NGO also admitted that he also received payments from certain Long Beach Mortgage sales representatives in order to push loan applications through the funding process. He further admitted that he knew that many of these loan applications were fraudulent, and that he and others took steps to “fix” the loan applications by creating false documents or adding false information to the applications or the loan file. As part of his plea agreement, defendant NGO has agreed to cooperate with the government’s ongoing investigation and prosecution of mortgage fraud involving residential home loans in the area of San Joaquin County.

Sentencing is set for April 7, 2008 at 8:30 a.m. before Judge Shubb. The maximum sentence for the offense of conviction is five years imprisonment and a fine of $250,000. 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.

Resources:
Press Release

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 it was announced that Investigators from the San Bernardino County District Attorney’s Real Estate Fraud Prosecution Unit arrested Kayla Stewart, 47, Lisha Lee, 36, and Valerie Nabors, 26, at the First American Title Office at 303 West Court Street in San Bernardino when they forged the signature of a 72-year-old female victim on a Grant Deed using a fictitious Louisiana driver’s license.

The elderly victim resides in Georgia and owns a home on the 1500 block of West Flores Street in San Bernardino that she was trying to sell. When the victim’s son was listing her property for sale, he discovered that her property had been fraudulently transferred to a female subject with no connection to the victim’s family. The forged deed had been filed and recorded at the San Bernardino County Recorder’s Office and the suspects were attempting to refinance the property for $160,000 through First American Title Company in Santa Cruz, California.

Investigators contacted Mr. Glenn Jackson of the First American Title Office in San Bernardino and arranged for the suspects to come into the business office and sign another Grant Deed. District Attorney Investigators, posing as office workers, met with Kayla Stewart at the title office. Stewart gave undercover investigators a fictitious Louisiana driver’s license with Stewart’s picture on it and the identity of the 72-year-old victim. Stewart signed the grant deed and was immediately arrested after completing the transaction. District Attorney Investigators, who were outside in the parking lot of the Title company, identified Lisha Kim Lee and Valerie Patrice Nabors, who were waiting in a vehicle. Lee and Nabors were questioned and taken into custody.

All three suspects were transported and booked at the Sheriff’s Central Detention Center in San Bernardino. Kayla Stewart was booked for conspiracy to commit Forgery, Identity Theft, and Financial Elder Abuse.

Her bail was set at $50,000.00 at the time of booking. Lisha Lee was booked for Conspiracy to commit Forgery, Identity Theft and Financial Elder Abuse also with a bail of $50,000.00. Valerie Nabors was booked for Conspiracy to commit Forgery, Identity Theft and Financial Elder Abuse. Nabors was also found to be on active felony Parole from the California Department of Corrections and booked for Parole Violation. She is being held without bail.

Resources:
Press Release

In the following press release United States Attorney Karen P. Hewitt announced that Alejandro Lopez, Emilio Lopez, Ravinderjit Singh Sekhon, and Linda Velasquez each pled guilty today in federal court in San Diego to conspiracy and wire fraud charges. The defendants entered their guilty pleas before United States Magistrate Judge Nita L. Stormes, subject to final acceptance of the pleas by United States District Court Judge Marilyn L. Huff at the time of sentencing.

According to court records, Alejandro and Emilio Lopez were two of the owners of “Century 21 El Dorado,” a San Marcos, California firm (pictured below) that offered real estate and home financing services targeting mostly Hispanic clientele. Alejandro and Emilio Lopez headed the “Lopez Team,” which consisted of, among others, loan officers, loan processors and real estate agents who conducted fraudulent real estate and loan broker activities. Ravinderjit Singh Sekon was a loan officer, and Linda Velasquez was the office manager. The Lopez Team obtained funding for financially unqualified clients from several sub-prime lenders who offered “stated” or “no income verification” loans at higher interest rates than conventional loans. To secure the loans, they submitted false information on loan applications and false supporting documents to lenders. During the conspiracy, they brokered fraudulent loans (including first and second mortgages), averaging approximately $400,000, for over 200 unqualified clients.

Picture Courtesy of The Voice of San Diego

As part of their guilty pleas, the defendants admitted that they solicited clients at swap meets and by advertising in Spanish language newspapers and publications and on Spanish language radio stations. At times they used third parties with higher credit scores as “straw buyers,” misrepresenting to lenders that the third parties would occupy the homes. To fraudulently qualify clients for loans, the Lopez Team inflated clients’ incomes and bank account balances; falsified employment, rent, and credit information; misrepresented that clients were United States citizens; used altered social security cards and bank statements; and purchased from tax preparers letters that misrepresented that clients were business owners and that the tax preparers had prepared the clients’ tax returns. When lenders called to check the references, they impersonated employers, landlords, and creditors to falsely verify the information.

The defendants admitted that they obtained $1,070,000 in loan commissions from their fraudulent loan activities. As part of their plea agreements, Alejandro Lopez, Emilio Lopez, Sekhon, and Velasquez have agreed to repay to the Government their illegal gains, totaling $1,070,000, in the form of forfeitures or fines.

United States Attorney Hewitt said, “In the midst of our nation’s sub-prime loan crisis, the U.S. Attorney’s Office is committed to prosecuting fraud schemes such as this one and will aggressively pursue those who attempt to circumvent lenders’ loan requirements.”

FBI Special Agent in Charge Keith Slotter commented, “We continue to investigate allegations of mortgage fraud, not only because of the wrongdoing that is associated with this particular criminal behavior, but because we are committed to protecting many Americans from paying higher mortgage rates as a result of unscrupulous behavior on the part of a few.”

Sentencing is scheduled before Judge Marilyn L. Huff on February 4, 2008 at 9:00 a.m., in federal court in San Diego .

Resources:
Criminal Complaint
Voice of San Diego news report
Press Release