Gerald L. Wolfe, Corona del Mar, California, an attorney, has been convicted by a jury and found guilty of count 1 related to a mortgage fraud scheme in which 30 homes were purchased at inflated prices, with the excess proceeds going to the members of the conspiracy. Wolfe, an attorney and formerly also a registered real estate broker, was charged with conspiracy to commit wire fraud. Sentencing is set for August 29, 2011, at 1:30 PM before Judge Andrew J. Guilford.
As previously reported by Mortgage Fraud Blog, the one count indictment alleged that Wolfe and others conspired to make fraudulent purchases of 30 properties in California Counties: Orange and Riverside, between the summer of 2005 and January 2006. The mortgages for the properties allegedly were fraudulent because the loan applications, among other things, misled lenders into believing that Wolfe or “straw buyers” would be living in those properties, contained fictitious personal information about straw buyers recruited by the conspiracy, and sought mortgages for inflated sale prices with agreements that sellers would return the inflated portion of the sale price to the conspiracy.
Most of the 30 homes involved in the scheme went into foreclosure. Investigators believe that the lose amount in relation to the scheme is more than $2 million.