Xue Heu, 37, Modesto, California, was arrested following an indictment charging him with wire fraud in connection with a fraudulent real estate investment scheme wherein he gave investors fraudulent documents, such as forged grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase.
According to the indictment, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC.
In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase.
The indictment alleges that Heu did not use the investors’ money to purchase the properties as promised, and instead, he directed the money to his own accounts and used the money for other purposes. As a result of his conduct, Heu allegedly defrauded investors of more than $360,000.
If convicted of the charges, Heu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the eight counts of wire fraud. Any sentence, however, would 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.
Heu is scheduled to be arraigned on the indictment before U.S. Magistrate Judge Gary S. Austin.
United States Attorney Benjamin B. Wagner announced the charges.
This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Christopher Baker is prosecuting the case.