Large-Scale Mortgage Fraud Scheme Gets Man Prison Time

Stephanie Abbott —  November 9, 2017 — Leave a comment

Arthur Change Menefee, 46, Stockton, California was sentenced today to three years in prison and ordered to pay over $5 million in restitution, for his participation in a large-scale mortgage fraud scheme.

According to court documents, Menefee was a licensed real estate agent who aided unqualified buyers in obtaining loans to purchase properties. Some of the properties were sold by co‑defendant Aleksandr Kovalev, who offered kickbacks to the buyers that were not disclosed to the lenders. Menefee assisted the buyers in preparing loan applications that included false information, and used fictitious companies he created to generate false information about the buyers’ employment and income to support the fraudulent loan applications. At least 23 properties were involved in Menefee’s mortgage fraud scheme, with substantial losses to the lenders.

To date, co-defendants Aleksandr Kovalev, Jannice Riddick, Florence Francisco, Adil Qayyum, Elsie Pamela Fuller, and Leona Yeargin have pleaded guilty and been sentenced. Two other defendants, Valeriy Vasilevitsky, charged in United States v. Vasilevitsky, 2:12-cr-344 KJM, and Ruth Willis, charged in United States v. Willis, 2:13-cr-00228 MCE, have also pleaded guilty and been sentenced with respect to their involvement in the scheme.

United States Attorney Phillip A. Talbert made the announcement.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.

 

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Stephanie Abbott

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