Wednesday, December 31, 2008

Mortgage Brokerage Owner and Operator Sentenced in Connection with Mortgage Fraud Scheme

Gohar J. Mirza, 29, Annandale, Virginia, was sentenced to 63 months in prison, followed by a term of three years supervised release, and ordered to pay more than $3,000,000 in restitution. Mirza pled guilty on September 23, 2008 to conspiring to commit mail and wire fraud in connection with a mortgage fraud scheme.

According to court documents, Mirza was an owner and operator of E-Star Lending, Inc., a mortgage brokerage company located in Burke and Annandale, Virginia. From approximately April 2005 through July 2008, Mirza and his co-conspirators profited by selling residential real estate in the Northern Virginia area to individuals referred to as straw buyers. Mirza and his co-conspirators, through E-Star, helped the straw buyers obtain 100% mortgage financing to purchase the properties by producing fraudulent loan applications which included materially false statements about the buyers’ employment, income, and other factors that lenders look at in deciding whether or not to make a loan. The straw buyers frequently defaulted on these mortgages, causing millions of dollars in losses to banks and commercial lenders.

Separately, on October 15, 2008, Walter F. Contreras, a loan officer for E-Star Lending, pleaded guilty before United States District Judge T.S. Ellis, III, to conspiracy to commit mail and wire fraud. According to court documents, Contreras recruited straw buyers to the scheme and caused fraudulent mortgage applications to be prepared in their names. Contreras‘s sentencing hearing is scheduled for January 23, 2009.

These cases are being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Edmund P. Power is prosecuting the cases on behalf of the United States.

mortgage fraud

1. Anybody know if “Gohar” was born in the US?

   Posted by  on  01/01  at  09:19 AM

2. No, but I am sure he is a citizen.

   Posted by  on  01/25  at  10:35 AM

3. He was born in Afghanistan. his brother, Johar, who was a real estate agent, was just as guilt, but, rumor has it, fled to Dubai where they have “connections”.

   Posted by  on  01/28  at  06:12 PM

4. Wholesale lenders need to stop being so politically correct and start facing reality in their risk management efforts. Specifically, brokers of middle eastern orgin are far more likely to perpetrate mortgage fraud than the general population of mortgage brokers. Therefore, loans brokered by middle eastern brokers must be checked, and rechecked with a fine tooth comb before clearing them for funding.

   Posted by  on  01/28  at  06:19 PM

5. I do agree that there appears to be a higher level of foreclosure in the minority community in general. That is red flag. I can tell you that many, but it seems, predominantly, Hispanic, the Asian and the Middle Esthern mortgage and real estate brokerage communities are surficing as producers of the current foreclosure epidemic. BUT let’s not forget that the people who borrow funds are just as guilty… in most cases any way. They seem to cooperate to make the deal go.

   Take a look at this article: www.washingtonpost.com/wp-dyn/content/article/2007/12/17/AR2007121701993_pf.html.

   These people have been pointed to the FBI on more than one occasion, yet, while EVERYONE knows that they have been very “creative” with their business practices, they continue to be in business! They continue to originate loans, AND added FHA loans to their menu not too long ago. Seriously??? Their real estate and title firms are all in the same building as their mortgage firm, with shared spaces and entrances etc, which are violations as well.

   Rumor has it that they have not been exactly truthful with their taxes and the IRS may very well have some money owed. AND, to make it all more interesting, they have the habit of knowingly “hire” illegals for low wages for payment under the table. AND, people very close to the family have made comments that they had money out of the US and they were surviving the hard times w/ that money.

   Tell me; what is it about them that stops the FBI from putting an end to the party?? People like them have killed hte economy of the most powerful country in the world. People like me cannot even use the HOV lane without getting caught, but criminals like that are living the good life without being bothered.

   Posted by  on  01/30  at  04:05 AM

6. I am not sure if I would be quick to jump and blame the whole middle eastern community. My neighbors are well-respected and fine folks and their kids grew up with mine. Let us not get racially charged. Wow! M- You seem like you know quite a bit. I think instead of posting with anonymity on web, you should probably co-coperate with authorities and help. It just amazes me how rumors just go about. I mean really, should you not go to authorities if you know all of this or if you know these relatives? I feel people who hold back such information are as guilty.

   Posted by  on  02/07  at  09:03 AM

7. For your information, Yes, I have cooperated with the authorities on this and I hope something gets done.

   I too have good friends from many places on earth… and I didn’t say that “every” person of one ethnicity or another was to blame for anything. If you know how to read, you would see that I used the word “predominant”.

   Not accepting the truth is the downfall of this country. This BS that everything is racism is just where this great country is getting to be the joke of the town in other countries.

   Norman, get real… you don’t even understand what racism is. Perhaps you are one of those fraudsters too? Or maybe you are one of those irresponsable buyers who can’t afford the mortgage? LOOK at the state of despair that this nation is facing and get real. Nobody meant to be racist, but there is always someone like you to throw gas in the fire.

   Talk about hiding… I didn’t see your last name here.

   Posted by  on  02/07  at  08:38 PM

8. M- I am not here to argue with you. I was referring to Steve’s comments, which sure is racism to me. It seems to me that you had more in common with these people. I am probably their father’s age, my only interaction with one of the brother was at a networking affair and frankly, I thought he was very well-spoken and a smart guy. I guess I am just more tolerant than others.
   I feel that if someone has committed a crime and have been punished then we, as a society cannot keep kicking the dead horse. As for being anonymous, at least I do not hide under an initial. Frankly, I browse these pages because I am concerned about the value of my own house, which I purchase over 20 years ago. Your comments are benighted and I am almost certain that a person who has as much information as you claim, is probably part of that circle.

   Posted by  on  02/08  at  01:48 AM

9. Does anyone know what happened to Walter Contreras? There is no information about his sentencing on the web. Now that guy was a true con artist, he has robbed so many in the hispanic community. He use to drive a BMW 7 series and would impress poor non-english speaking and uneducated hispanics, so they would let him defraud them. I wonder how much time did he get?

   Posted by  on  02/08  at  01:52 AM

10. Oh, Steve, you are so tolerant… maybe you are one of them too.

    The Mirza’s used the credit of someone I know without permition to “recycle” 18 diferent loans!! If it was your credit Steve, I am sure you wouldn’t be so “tolerant” about it. It is not about tolerance, or kicking the dead horse, it is about crime my dear. Those guys are not kids. They knew that what they were doing was a crime. They kept on doing because their bank accounts were engorged further every time. 

    Mortgage fraud is a rampant crime and is the reason this great country is in a hole.

    Posted by  on  02/09  at  06:43 AM

11. I meant Norman, NOT Steve, sorry—lol

    I got Steve in my mind it seems.

    Posted by  on  02/09  at  06:47 AM

12. 18 loans? That is by far the biggest exaggeration I have ever read. Do you even undertand what you wrote? I am no mortgage guru, but I hold extensive background in risk analysis. Read this word by word, there would be only so many government agencies in secondary market that would let two three or four skip as being financed under one persons name. I do not undertand why people make such benighted comments? I mean I understand that mortgage business had so many hady characters, but I hope you try to educate yourself as to what is really possible.
    I do believe in the adage, if you cannot do the time, dont do the crime. But, I also believe in second chances and US is the only country in the world where you can go broke and be a felon, yet you can turn it around.

    Posted by  on  02/09  at  01:32 PM

13. Norman, when I was employed by Feddie Mac, I know for a fact that they did not have the technology to recognize duplicate loans made to either the same borrower or secured by the same property. If we suspected a borrower might have additional loans, we could manually run a report searching for the same SS# or the same property address but there was no automated detection system. Even if the secondary investors did or do have some sort of multiple loan alert technology tool, it could easily be beat by fraudsters. Specifically, fraudsters have been known to take a person’s ID and submit the applications to dozen different lenders and then after getting all 12 approved, they schedule 12 separate closings to occur at some closing agent that is in on the scam. 18 duplicate fraud loans is a lot of work for a fraudstrs but not out of the question.

    Posted by  on  02/09  at  02:17 PM

14. Steve-Wow! That is news to me. My firm use to provide risk analysis to Fannie Mae. I know that they had detection systems in place. More importantly, there automated underwriting was able to detect such duplications. However, the technology got updated very recently. You know it amazes me that FNMA, FREDDIE MAC and FHA, which are the primary source of these sort of mortgages in the secondary marketing did not think about this?
    I am just pissed about these 100% loan stuff. Frankly, I think this whole FHA thing should go away with 3% down payment as well. My brother bought through FHA two years ago, and his house is worth half of what he paid and he is walking away. It goes to show that even fully verified loans are not protected by such times. The problem is that these ideologies about home ownerhip for the low income will always have a drawback in grand scale of things, that is, if the economy were to take a blow of this magnitude. In a large economy like ours, these sort of crimes are petty change. I am not commending them, I am simply saying that the bigger culprits are probably vacationing at Key West.Lastly, let us no forget one thing that fraud usually involves all parties. By that, I mean that MOST of the time the borrower, apraisal, broker, real estate agent and everyone else is on board. Believe it or not, sometimes a mortgage broker may get defrauded by shady borrowers. Law was never meant for law abiding citizens, they would not break the law. It was meant for those who will find a way to break the law.

    Posted by  on  02/10  at  02:32 AM

15. Norman, what world have you been living in dude?? The Mirzas beat the system and used the same “buyers” for multiple loans more than once—simultaneously. That is a fact because I know a victim! How do you think the FBI got involved??

    Sheesh…

    Fraudsters have beat the system, over and over, and over again.

    I too believe that anyone and everyone can turn their life around. But in the mean time, the mass needs to see that the law is seeking to make fraudsters serve their time. That might help “tame” their “urge” to commit fraud for the sake of profit.

    Posted by  on  02/10  at  07:40 AM

16. M- I have been reading a lot of these types of frauds over the net. Even in my own neighborhood, there are signs of fraud. It does not take a genius to figure out some of this. One thing that is very common is that in 90% of the cases borrowers are equally involved. They typically have a payout, they are not innocent bystanders, as you may imply.
    The problem is when $hit hits the fan, everyone points at everyone. It is a conspiracy, and by that token, the borrower should be jailed as well. I am almost certain that the borrower you know was very well aware of what’s about to come and I wonder how much did he or he got paid? You see law enforcement does not have the resources to go after each and everyone. They take someone who is easier to prosecute or supposedly someone who is easy to portray as a villain, let’s call it a slightly bigger fish than others, and they make a damn good example out of it. Ironically, all the players almost never get punished.
    I was just reading another case in Northern Virginia, which involved 33 mil and he got 7 years for his deeds. Do you really think someone who pulled of a 33 mil fraud is the only one involved? Of course, every fraudster deploys different methods. Statistically, flippers usually have co-operation from borrowers. In essence, these are not identity frauds, they are mortgage frauds in every sense and the only victim is the bank, as MOST buyers reap payouts, so I do not necessarily have mercy for any of them either. I hope that FBI looks into the borrower you speak of to make sure that the borrower is actually a victim,and not a co-conspirator. 9/10 there is some sort of fishiness. I am not saying all of them, but most of them. I would love to see more so-called victims getting prosecuted, and I do not mean only in this case. I mean even those guys who bought many properties in speculation and then walked away and flooded my neighborhood with inflated properties.

    Posted by  on  02/11  at  02:49 AM

17. On another note, whateve happened to this Walter Contreras guy? I think someone else inquired about it too. Does anyone know? I am just curious to know the length of his sentencing.

    Posted by  on  02/11  at  02:53 AM

18. I am curious too about conteras’s sentencing. Gohar is out and johar is in, their bith country is Pakistan.

    Posted by  on  03/25  at  10:55 AM

19. Walter Contreras got three years. He should have gotten a decade or more. They have no idea what this guy did to his own community. I think they put him away for the least amount of stuff they could get on him. They dont have the time to dig. Forget these small fries, think of Madoff, they got him guilty in less then 6 months. They get them to agree on major things and call it a day.

    Posted by  on  04/01  at  08:12 AM

20. Corrupt Pakis yet again!!

    Posted by  on  05/07  at  04:15 PM

21. Bruce- Read through the boards here. I think you will find corrupt white man, American man and woman, chinese and every other race. I think your racial prejudice is uncalled for.

    Posted by  on  05/13  at  01:36 PM

22. Both are From Pakistan and his Brother should have been the one in Jail - he is the one behind everything - he is sitting in lahore, pakistan.

    Posted by  on  09/16  at  05:12 PM

23. I with you agree. In it something is. Now all became clear, I thank for the help and I hope to see more such articles.

    Posted by Kyoko  on  11/11  at  04:38 AM