Monday, October 26, 2009
18 Californians Indicted on Marijuana and Mortgage Fraud Charges
14 Bay Area residents have been indicted and charged with conspiracy to manufacture at least 1000 marijuana plants and manufacturing at least 1000 marijuana plants arising out of a wide-scale, sophisticated indoor marijuana cultivation operation in the Central Valley, California. The federal grand jury also returned a separate indictment charging five Bay Area residents with 26 counts of mail fraud in connection with mortgage fraud in several houses used in the scheme. (One defendant is charged in two indictments, making the total 18.)
Charged in the marijuana conspiracy primarily in the Stockton, California area:
Dickson Wing Kei Hung, 35, San Francisco;
Jiang Hong Liang, 28, San Francisco;
En Hao Lin, 23, San Francisco;
Rui Liu, 22, San Francisco.
Charged in the marijuana conspiracy primarily in the Lathrop, California area:
Lup Park Li, 39, San Francisco;
Joyce Yi Ling Wang, 32, San Francisco;
Kong Yuan Li, 46, Castro Valley;
Khin "Kenny" Ung, 49, San Leandro;
Lian Z. Li, 41, Alameda;
Zhi Yong Lin, 50, San Francisco;
Charged in the marijuana conspiracy primarily in the Sacramento, Elk Grove, California area:
Can Hui Zhen, 32, San Francisco (charged in the 2006 indictment);
Simig Zhu, 32, San Francisco;
Dennis Hou Huan Yang, 35, San Francisco;
Guo "Ivan" Ying Lu, 29, Milpitas.
The following defendants are charged in the mortgage fraud scheme:
Dickson Wing Kei Hung, (also charged in the marijuana manufacturing)
Karen N. Lee, 29, San Francisco;
Ngai Chung Hung, 28, San Francisco;
Wayne Rong Zhi Feng, 29, Oakland;
Wing Chou Chan, 27, San Francisco.
The superseding indictments allege that the defendants operated sophisticated, large-scale, commercial marijuana gardens in approximately 50 single-family homes located in Sacramento, Elk Grove, Stockton, Lathrop, Tracy, and Modesto, California in 2006 and 2007. Approximately 24,500 marijuana plants were recovered by law enforcement officers during the execution of search warrants during the initial stages of the investigation.
The mail fraud indictment alleges that five defendants committed mortgage fraud between March and October 2006 in order to purchase 26 residences in Stockton that were to used to grow marijuana, were being converted or were awaiting conversion for indoor marijuana cultivation. As a result of the mortgage fraud scheme, various financial institutions and mortgage lenders issued approximately $15,000,000 in residential home loans with a resulting multimillion dollar loss.
These indictments are the product of a continuing investigation into indoor marijuana manufacturing that began in 2006. The original indictments, returned in 2006 and 2007 charged 17 individuals with conspiracy to manufacture at least 1000 marijuana plants and manufacturing at least 1000 marijuana plants. Of the 17 originally charged, 15 have pleaded guilty and two remain at large.
If convicted of conspiracy to manufacture marijuana and manufacturing marijuana counts, the defendants face a maximum possible sentence of life in prison and a mandatory minimum sentence of at least 10 years in prison. If convicted of the mail fraud counts, the defendants face a maximum possible sentence of 20 years in federal prison. The actual sentence, however, 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney Lawrence G. Brown, DEA Assistant Special Agent in Charge Gordon Taylor, and IRS-Criminal Investigation Special Agent in Charge Scott O'Briant announced the Sacramento federal grand jury superseding indictments.
This case is the product of an extensive investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigations Division, Elk Grove Police Department, Stockton Police Department, and Lathrop Police Department. Significant assistance was also provided by Bay Area local, state, and federal law enforcement agencies and the U.S. Attorney's Office for the Northern District of California.
"All of the individuals indicted in this case are from the Bay Area. They chose the Central Valley to perpetrate their scheme due to lower housing prices. They chose unwisely. What they failed to factor in were residents proud of their neighborhoods, skilled local police departments, and federal agencies that work seamlessly with their local and state counterparts," stated U.S. Attorney Brown.
DEA Assistant Special Agent in Charge Taylor noted, "Operation Marvin Gardens is a crackdown on one of the largest, most sophisticated residential indoor marijuana growing organizations in the nation. This Bay area crime ring invaded our nice bedroom communities, set up marijuana factories, and ultimately impacted the real estate, mortgage and utility company industries. The success of this investigation would not have been possible without the cooperation of multiple law enforcement agencies."
"These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, leave lenders burdened with bad loans and neighborhoods with abandoned and deteriorating properties. IRS-CI is committed to pursuing individuals who create such havoc,"stated IRS, Criminal investigation Special Agent in Charge O'Briant.
mortgage fraud
This group also had a home in Red Bluff, CA. They stripped out all of the walls except for studs and put in a timer controller for water and light. The home was sold for $500+k and was foreclosed after the perps were arrested. The lender lost alot of money.
Posted by on 10/28 at 04:51 AM
A bunch of asian immigrants, most likely illegal immigrants, that have absolutely no respect for our laws but selfish enough to have plenty of respect for our money. Such nasty, greedy pigs! I say, put them all in the electric chair!
Posted by on 10/29 at 12:13 PM
great post, thank you
Posted by on 11/11 at 11:33 AM
Whoa, even marijuana are manufactured now. Anyway, if one of you are interested in manufacturing, you can register at Freelancer.com and use this code BUILDIT4ME to get more advantages. There are many projects waiting for you.
Posted by on 11/11 at 11:35 AM
Post a Comment
The trackback URL for this entry is:
Trackbacks:
|
Some Sources require Registration.
Mortgage Scam Ends with Prison
The Morning Call
A judge didn't hold back when Shirley Matthews appeared before him Tuesday to be sentenced for stealing from a Monroe County man instead of helping him save his home from foreclosure, as she was hired to do.
Woman Gets Prison Time After Mortgage Scam Conviction
Pocono Record
A New Jersey woman will be spending two to five years in state prison after she was sentenced on Tuesday for promising to help homeowners avoid foreclosure and then keeping the money she was given for their mortgages.
2 Indicted in Mortgage Scam Face New Charges
Newsday.Com
Prosecutors add extra charges to two who are charged in LI mortgage fraud with county legislator, dominatrix and her husband
Untangling Mortgage Fraud in Chicago Condo Buildings
Chicago Public Radio
Why did so many units go into foreclosure all at once? In some cases, the reason can be traced to mortgage fraud.
No Contest Plea Entered in Real Estate Fraud Case
Northbay Business Journal
Juan Carlos Alcala of Windsor pleaded no contest to nineteen felony counts and admitted three special allegations for defrauding real estate investors, money laundering and elder fraud.
Bedford Woman Sentenced to a Year in Prison for Mortgage Fraud
Plain Dealer
Sharon Cox, 49, of Bedford, was sentenced today to a year in prison for mortgage fraud involving money laundering, theft and receiving stolen property from August 2008 through March.
CITIZEN JOURNALISM: Mortgage Fraud High in Area
Washington Times
According to the FBI, Virginia, Maryland and the District are among the top 10 jurisdictions experiencing mortgage fraud.
Former Vegas Resident Charged with Mortgage Fraud in Nevada
National Mortgage Professional Magazine
A former Las Vegas resident has been charged with federal conspiracy and fraud charges for his involvement in a Nevada mortgage fraud scheme involving straw buyers and falsified mortgage loan documents...
Missouri Man Sentenced for Mortgage Fraud
Belleville News Democrat
A suburban St. Louis mortgage company operator has been sentenced to more than 11 years in prison for a mortgage fraud scheme.
12-Year Prison Term in Mortgage Swindle
Washington Post
A Maryland woman who stole millions from Washington area homeowners trying to avoid foreclosure is a "vulture" whose case should serve as a warning to other con artists...
Previous Articles
|
Trial coverage provided by Anne Mitchell, Crazy Fish Realty.
F. Jeffrey Miller Update - October 20, 2009
A hearing was held in Topeka, Kansas in front of Judge Julie Robinson. Miller is currently being held pending his sentencing which is set for December 22nd, 2009 at 9:00 a.m.. Steve Vanatta and Hallie Irvin, Miller's codefendants, will be sentenced at that time also.
Several motions were heard this week. One was a motion for Miller to be released pending his sentencing. Miller's attorney, Jeff Morris, argued that the court had dismmissed with predjudice the matter involving Miller's purchase of a commercial lawnmower, violating the court ordered monitoring agreement. He also argued that Miller was not a flight risk and should be released. This motion was denied.
Another motion heard by Judge Robinson was that of an escrow account containing proceeds from the sale of Miller's forfeited assets. This account has a balance of $143,000. Attorney Morris argued that his firm was due $100,000 for work done in the Miller matter, to date. The government argued that his 'un-itemized fees' were 'exhorbitant'. The balance of the funds, Morris argued, should be released to the Miller family to help pay for mounting household expenses.
The government argued that the 'Asset Forfeiture Provision' applies down to 'the last penny' and that 'the rights of the victims to made whole are of paramount immportance' and that no routine household expenses like Visa bills, are allowed.
Attorney Morris argues that there is more than enough assets to satisfy the jury's judgement of $2.65 million dollars. The government argues that the estimated value of his assets are only $1.4 million.
The government also stated that Miller has been paid dividends from a company Miller has an ownership interest in; Boreflex. From July, 2008 to present, Miller has been paid $330,509.30 from Boreflex, unbeknownst to the court appointed monitor.
Present in the courtroom was Todd Earnshaw. Earnshaw was indicted along with Miller and others in what is commonly referred to as 'Miller I'. That trial is scheduled to begin on January 11, 2010 in Topeka, Kansas.
More Trial Coverage
|
|
|
|
|
|
|
|
|
|
|
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
