Conspirator Sent to Prison for Illegal Property Flipping Scam

Allison Tussey —  February 10, 2015 — Leave a comment

Joshua Clymer, 28, San Francisco, California, was sentenced to two years in prison for conspiracy to commit mail and wire fraud in connection with a loan origination and property flipping mortgage fraud scheme. 

Clymer previously pleaded guilty pursuant to a plea agreement.

According to court documents and evidence presented at the trial of co-defendant Leonard Williams, from late 2006 into 2008, Clymer and Williams conspired to carry out a loan origination and property flipping mortgage fraud scheme using the companies Diamond Hill Financial and Bay Area Real Estate Holdings. To carry out the scheme, Clymer and Williams recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes.

Clymer and others assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers’ employment, income, assets, and intent to occupy the homes as a primary residence. In most cases the loan applications falsely stated that the buyers worked at Diamond Hill Financial, a company associated with Clymer and Williams. Hundreds of thousands of dollars in home loans were issued as a result.  The profit to Clymer and Williams varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.

Clymer’s sentencing marks the last of 14 defendants to be sentenced for mortgage fraud offenses in connection with this and related cases.  Others who have already been convicted and sentenced include Garret Gililland (94 months), Leonard Williams (87 months), Niche Fortune (57 months), Kesha Haynie (46 months), Eric Clawson (37 months), Anthony Symmes (35 months), Carlos Chamorro (27 months), Shane Burreson (23 months), Christopher M. Chiavola (22 months), William E. Baker (18 months), Nicole Magpusao (535 days), Brandon Resendez (9 months), and Remy Heng (6 months home detention). Twelve of the defendants pleaded guilty, including Clymer.  Juries have convicted the two defendants who went to trial, Haynie and Clymer’s coconspirator Leonard Williams.

United States Attorney Benjamin B. Wagner announced the sentence.

This case is the product of an investigation by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; and the Butte County District Attorney’s Office’s Major Crimes Unit. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath prosecuted the case.

Allison Tussey

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