Monday, June 23, 2008

9 Californians Charged In Cash Back Scheme

Nine defendants were charged by with mail fraud, money laundering, and related offenses in connection with a “cash back to buyer” mortgage fraud scheme that occurred between May 2006 and September 2006. The defendants charged are:

Joy Johnson, 33, Solano County, California;

Elizabeth Carrion, 38, Solano County, California;

Lenin Galeano and Carmen Galeano, 32 and 30, husband and wife, Solano County, California;

Angelito Evangelista, 40, Solano County, California;

Clarisa Ang and Cris Ang, 43 and 46, husband and wife, Solano County, California;

Lydia Ang, 71, Cris’ mother, Solano County, California; and

Cory Whalen, 31, Solano County, California.

The defendants purchased 12 houses in Solano County, California. In all but one of the transactions, the real estate agent was Johnson. The real estate transactions were designed to allow the sellers to credit defendants “money for repairs” at the close of escrow.  The purchase prices were substantially inflated from the list prices, and the increases were then credited at the close of escrow to fictitious businesses controlled by the defendants. The defendants by and large did not use the funds they received for repairs on the properties. Instead, the funds were used to pay the mortgage payments on the properties and for living expenses. In addition, the loan applications contained false information about employment, income, assets, real estate owned, and/or occupancy status. Eleven of the homes have either been foreclosed upon or have had notice of defaults recorded against them. The amount of loss attributed to these defaults has not been determined, but it is anticipated the lenders will sustain losses in excess of one million dollars. This case was investigated by the FBI and IRS-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Courtney Linn.

The properties listed in the Criminal Complaint are:

142 Virginia Street, Vacaville, California;
701 Camellia Way, Vacaville, California;
206 Arbor Street, Vacaville, California;
254 Newport Circle, Vacaville, California
1889 Buena Tierra Street, Vallejo, California;
429 Valle Vista, Vallejo, California;
301 Campbell Avenue, Vallejo, California;
909 Hargas Avenue, Vallejo, California;
21 La Cruz, Benicia, California
337 East T Street, Benicia, California.

mortgage fraud

1. For everyone who voted yes on the poll on the bottom of this page that asks,

   “Can a borrower legally get cash back at closing of a purchase money mortgage? “

   I hope you all start to realize that the correct answer is No!

   Posted by  on  06/23  at  10:49 AM

2. Thats not true Bob. Only if its disclosed to the lender on (HUD) and of course the lender agrees! Its fraud when you cover it up…

   Posted by  on  06/23  at  03:29 PM

3. Greedy theives, I hope they get 10-25 years, especially the mother Lydia Ang,. I also love the way the brothers turned on each other. Hum, sounds like a novel in the making. I’m so glad they were caught, few of their statements and comments are unreal. Again, I hope they get at least 10 years.

   Posted by  on  08/30  at  04:40 PM

4. I think the brother who owned Rare Management took advantage of his brother’s creditline who was the STAW PURCHASER trying to help him out by jumpstarting Rare. Imagine he lived in his brother’s house paid half of the rent, ran the business using proceeds coming from purchased homes.  When the Feds came, he turn on his brother. Never lend your credit with family!

   Posted by steve  on  10/04  at  06:55 AM