Loan Processor Admits Providing Funds to Borrowers to Inflate Assets

Allison Tussey —  February 7, 2014 — 1 Comment

Jun Michael Dirain, 41, Antelope, California, pleaded guilty to conspiracy to commit wire fraud in connection with a mortgage fraud scheme.

As previously reported by Mortgage Fraud Blog, and according to the Indictment, Delta Homes and Lending Inc., a real estate and mortgage lending company, employed Dirain and other co-defendants in the case. Between October 2004 and May 2007, Dirain, a loan processor, conspired with others to obtain home loans from mortgage lenders based upon loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, employment status, and citizenship status.

As part of the scheme, Dirain and his co-conspirators provided money to borrowers in order to temporarily inflate the borrowers’ assets and bank account balances until the lenders approved the loans. Then the borrowers returned the money to the defendants. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the defendants’ actions, mortgage lenders and others suffered losses of at least $4 million.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Lee S. Bickley is prosecuting the case.

Dirain is scheduled to be sentenced by Judge William B. Shubb on April 28, 2014. Dirain faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

A status conference is scheduled for February 10, 2014, for the remaining defendants, including Moctezuma Tovar, Manuel Herrera, Ruben Rodriguez, and Jaime Mayorga, all licensed real estate agents residing in Sacramento; Sandra Hermosillo, Woodland, formerly a loan officer; and Christian Parada Renteria, Sacramento, formerly a loan officer.

Allison Tussey

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One response to Loan Processor Admits Providing Funds to Borrowers to Inflate Assets

  1. The RE industry is utterly lawless.

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