Archives For California

Vera Kuzmenko, 45, Loomis, California and Rachel Siders, 40, Roseville, California, were found guilty by a federal jury after a 16 day trial of multiple counts of mail and wire fraud associated with their involvement in a mortgage fraud scheme that cost financial institutions over $16 million.

Vera Kuzmenko was also found guilty of witness tampering and money laundering associated with the scheme.

According to evidence presented at trial, from late 2006 through early 2008, the defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento, California, area. The defendants were responsible for securing more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. Records introduced at trial showed Vera Kuzmenko received millions of dollars and Rachel Siders received hundreds of thousands of dollars. Continue Reading…

Andrea Ramirez, 47, Rancho Cucamonga, California was sentenced to 18 years in federal prison and ordered to pay $6,764,743 in restitution for orchestrating a scheme that offered bogus loan modification programs to thousands of financially distressed homeowners who lost more than $7 million when they paid for services that were never provided.

Ramirez was the founder, co-owner and organizer of a telemarketing operation known under a series of names – including 21st Century Legal Services, Inc. – that bilked more than 4,000 homeowners across the nation, many of whom lost their homes to foreclosure. Ramirez was sentenced today after pleading guilty to one count of conspiracy to commit mail fraud and wire fraud.

This fraudulent company purposely targeted homeowners who were extremely vulnerable because they were facing foreclosure,” said United States Attorney Eileen M. Decker. “Ramirez and her co-defendants made false promises to desperate homeowners, often took the last of their money and then abandoned them. Her contempt for her victims will put her in federal prison for nearly two decades.” Continue Reading…

Ryan Costo, 40, Roseville, California, was sentenced to four years and three months in prison for bank fraud in a scheme to defraud lenders.

According to court documents, Costo overstated his income and financial assets in connection with a $1.35 million loan from Bank of America related to the acquisition of a classic aircraft. Costo not only made false statements about his income and various bank and stock account balances on the loan application, but also caused various false and fraudulent account statements and tax returns to be given to the Bank of America in order to procure the loan. Costo made various false representations and submitted false documents to obtain three other loans: a $1.95 million loan from CitiMortgage Inc. related to a Granite Bay, California residence; a $3 million loan from Washington Mutual Bank, now Chase, related to another Granite Bay, California residence, and a $267,000 loan from San Diego Private Bank. Costo pleaded guilty to bank fraud on October 3, 2013.

United States District Judge Morrison C. England Jr. sentenced Costo.  The case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger prosecuted the case.

Brian Kandefer, 37, San Diego, California, was sentenced to 121 months imprisonment and ordered to pay $1.4 million dollars in restitution after his guilty plea to wire fraud and money laundering.

According to documents in the case, K2 Capital Management Inc. did business as US Mortgage Bailout and USMortgageBailout.com with physical offices located in La Jolla, California.  Brian Kandefer was a 50% owner of K2 Capital Management Inc. dba US Mortgage Bailout and dba USMortgageBailout.com.  Continue Reading…

Edward Khalfin, 58, San Mateo, California was found guilty by a federal jury of 12 counts of mail fraud and 11 counts of making false statements on loan applications. Robin Dimiceli, 53, Brentwood, California was found guilty by a federal jury of six counts of mail fraud and six counts of making false statements on loan applications.  The convictions arise out of a builder bailout scheme that provided financial incentives to straw buyers to get them to purchase homes that developers were having difficulty selling

According to court documents, from August 2006 through May 2008, two brothers, Volodymyr Dubinsky, 56, formerly of Folsom, California, and Leonid Doubinski, 50, formerly of Copperopolis, California, built, developed, and sold real estate in Carmichael, California, Sacramento, California, and Copperopolis, California. As the real estate market declined, the brothers recruited family members, employees, and associates with good credit to act as straw buyers for residential properties. The Dubinsky brothers have not been apprehended and are fugitives thought to be residing in Ukraine. Continue Reading…

Valeri Kalyuzhnyy, 44, Citrus Heights, California, was sentenced to 2 years in prison.

On June 25, 2015, Kalyuzhnyy pleaded guilty to making a false statement on a loan application. According to court documents, Kalyuzhnyy, while working as a mortgage broker, bought two homes using the credit information of a straw buyer. The loan applications that were used to secure the properties contained numerous false statements regarding the buyer’s intent to occupy the property, employer, occupation, and monthly income. In order to support the inflated monthly income listed on the loan application, fraudulent tax returns were submitted. On July 17, 2007, Kalyuzhnyy gave the straw buyer a check for $29,000.

United States District Judge Morrison C. England Jr. sentenced Kalyuzhnyy. The case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Jared C. Dolan prosecuted the case.

Sean McClendon, 49, Elk Grove, California, was sentenced to one year and eight months in prison.

On October 18, 2012, McClendon pleaded guilty to a conspiracy to commit mail fraud for his involvement in a Sacramento, California area mortgage fraud scheme with Anthony Salcedo and Anthony Williams. According to court documents, McClendon and Williams recruited straw buyers to purchase four properties owned by Salcedo or his associates using kickbacks, false financial information for the buyers, and payments outside of escrow.

All properties involved were foreclosed by the lenders, resulting in losses of over $1 million.

In June 2015, a jury found Salcedo guilty of four counts of mail fraud and one count of conspiracy to commit mail fraud. He is scheduled to be sentenced on November 12, 2015. On January 29, 2015, Williams was sentenced to two years and nine months in prison.

United States District Judge Morrison C. England Jr. sentenced McClendon.  The case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Marilee Miller are prosecuting the case.

Stephen Pirt, 37, Mountain House, California, was sentenced to 2 years and 1 month in prison for his participation in a large-scale mortgage fraud scheme. According to evidence presented at the trial for co-defendant Erik Hermann Green, 33, Roseville, California, Pirt and Green defrauded the New Century Mortgage Company by submitting false documentation about borrowers’ employment, income and assets, including fraudulent loan applications and other altered bank documents. On September 19, 2013, Stephen Pirt pleaded guilty to wire fraud.

United States District Judge Troy L. Nunley told Pirt, “you were an organizer and leader of the scheme, and you need to be punished for that.”   The judge also explained the need for a proper deterrent effect.

Green is scheduled to be sentenced by Judge Nunley on November 19, 2015. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine.

The case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Alameda County District Attorney’s Office. Assistant United States Attorney Michael D. Anderson and Special Assistant United States Attorney Josh F. Sigal are prosecuting the case.

Hubert Rotteveel, 52, Dixon, California was sentenced  to three years and four months in prison for one count of mail fraud, .

In September 2014, Rotteveel was found guilty by a federal jury of one count of mail fraud relating to 13 properties in Dixon. According to evidence produced at trial, Rotteveel acted as a real estate salesperson for the 13 properties, with over $7 million in loans authorized for just two buyers in seven months. He inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the buyers to induce the lenders to fund loans for the properties. Rotteveel surreptitiously made the down payments on the homes, instead of the buyers, and got that money (and usually more) back from the lenders at closing. For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company owned by Rotteveel, without disclosing these payments to the lenders. All 13 properties were used as rentals, with Rotteveel collecting the rents through Windmill Properties. He netted over $300,000 through the sales in just seven months, and the lenders lost more than $3 million when all 13 properties underwent foreclosure.

United States Attorney Benjamin B. Wagner stated: “Hubert Rotteveel used his knowledge of the real estate market in Dixon to defraud lenders of over $7 million, resulting in losses of over $3 million after each of the homes went into default and a foreclosure sale was held. Today’s sentence is one step in the continuing effort to hold real estate professionals responsible for their role in the mortgage meltdown.”

This prosecution should serve as a warning to those who abuse their position of trust,” said Thomas McMahon, Acting Special Agent in Charge, IRS-Criminal Investigation. “Mr. Rotteveel manipulated the MLS listings for properties, failed to disclose his true role in the transactions and made numerous misrepresentations to lenders.  Although this sentence cannot reverse the damage caused by Mr. Rotteveel, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”

Rotteveel was sentenced by Senior United States District William B. Shubb.   The case was the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Justin L. Lee prosecuted the case.

Olga Palamarchuk, 45, Rancho Cordova, California was sentenced to five years and 10 months in prison; Pyotr Bondaruk, 44, Sacramento, California, was sentenced to five years and 11 months in prison; Vera Zhiry, 35, Sacramento, California, was sentenced to three years and one month in prison; and Peter Kuzmenko, 37, West Sacramento, California, was sentenced to five years and 11 months in prison, two years of which is to be served consecutively to the 19-year sentence he received for another mortgage fraud scheme.

In July 2015, after a three-week trial, a federal jury found the four defendants guilty of conspiracy to commit mail fraud related to a mortgage fraud conspiracy. Palamarchuk and Bondaruk were also found guilty of making false statements to a financial institution and money laundering. Zhiry was also found guilty of money laundering.

According to evidence presented at trial, Palamarchuk, a loan officer at Capital Mortgage Lending Inc., recruited Bondaruk to purchase two houses using 100 percent financing and to refinance and obtain a home equity line of credit on one of the houses. In order to qualify for the loans, Palamarchuk and Bondaruk submitted fraudulent loan applications to lenders, falsely stating Bondaruk’s employment, income, assets, and intent to occupy the homes as his primary residence.

In addition, the defendants fraudulently inflated the value of the properties and diverted the excess funds to themselves. For example, Peter Kuzmenko received $32,378 in seller’s proceeds for landscaping and pool work his company Pete’s Pool Service purportedly performed on a house without a pool. Similarly, Zhiry received $100,000 to pay off a purported debt owed by the sellers that the sellers denied existed, and Zhiry provided $40,000 of that money back to Olga Palamarchuk.

The mortgage crisis damaged the national economy and the Sacramento region was especially hard hit. Without individuals like these defendants, who lied on loan applications, lied to lenders and continued to lie to federal agents, this could not have happened,” United States Attorney Benjamin B. Wagner stated. “We will do what is necessary to ensure that those who took advantage of a system based largely on trust and honesty are held accountable.”

This case can be summarized in one word: greed. The defendants wanted to make a quick buck and they did that by committing fraud,” said Supervisory Special Agent Dan Bryant of the FBI’s Sacramento field office. “The sentences imposed by Judge Nunley send a clear message to others in our community thinking about breaking the law for financial gain; it’s not worth it.”

Today’s sentencing closes the chapter on this conspiracy of fraud,” said Thomas McMahon, Acting Special Agent in Charge, IRS Criminal Investigation. “The damage caused by these defendants cannot be overstated. Fraud in the mortgage industry has played a major role in almost crippling this nation’s economy. IRS-CI will continue to investigate individuals who engage in deceptive and fraudulent behavior, fueled by greed.”

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Lee S. Bickley and Heiko P. Coppola are prosecuting the case.

These sentences bring to 11 the number of defendants sentenced this week for mortgage fraud offenses. On Monday, Bakersfield residents Lucia Yolanda Chavez, 37, was sentenced to four years in prison, and Joseph Chavez, 41, was sentenced to three years in and were ordered to pay $1.8 million and $1.44 million in restitution respectively. On Tuesday in Sacramento, Hubert Rotteveel, 52, of Dixon, was sentenced to three years and four months in prison; Peter Kuzmenko, 37, of West Sacramento, was sentenced to 19 years in prison; Aaron New, 41, of Sacramento, was sentenced to 11 years and three months in prison; Nadia Kuzmenko, 36, formerly of Loomis, was sentenced to eight years in prison; and Edward Shevtsov, 51, of North Highlands, was sentenced to eight years in prison.