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Mortgage Fraud Intertwined in Fraudulent Visa Scheme

Rachel Dollar —  September 8, 2015 — 4 Comments

****UPDATED April 20, 2020:  Kishore Pallapothu was sentenced to 33 months in federal prison, 3 years supervised release and was ordered to pay $2,500,000 in restitution.

***UPDATED:  On April 30, 2019, Kishore Pallapothu pled guilty to Conspiracy, Visa Fraud and Witness Tampering.  The government dismissed the indictment against Ragini Vecham aka Ragini Vechman,, Softnet Technology Solutions aka Sonoma Staffing, Inc., Ramana Reddy, Rose 23 Hayward LLC, Sage 20 Hayward LLC, Jasmine 20 Hayward LLC, Tulip Hayward LLC, and Lily Hayward LLC without prejudice.

Originally published 9/8/2015 – Ragini Vecham, 36, Cupertino, California; Kishore Pallapothu, 42, Cupertino, California; Satyanarayana Tota, 45, Sunnyvale, California; and Ramana Reddy, 44, Sunnyvale, California, were indicted for their part in an alleged conspiracy by which individuals used companies to fraudulently submit fraudulent H-1B visa applications and other documents to the U.S. Department of Homeland Security and the U.S. Department of Labor.  The companies indicted include Horizon Technologies, Inc., Softnet Technology Solutions, Inc., Rose Hayward LLC, Sage 20 Hayward LLC, Jasmine 20 Hayward LLC, Tulip 26 Hayward LLC, and Lily 20 Hayward LLC. Also according to the indictment, as part of the scheme, Vecham and Pallapothu created and funded numerous limited liability companies for the purpose of purchasing commercial and residential real estate to conceal funds generated from the illegal visa fraud and conceal assets from the Government investigation.  Vechum and Pallapothu allegedly also fraudulently obtained several loans to finance the purchases that were then titled in the names of the limited liability companies. Continue Reading…

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Guilty Plea in Distressed Real Estate Investment Scheme

Rachel Dollar —  August 26, 2015 — Leave a comment

William Donnelly Yotty, 69, who currently resides in Monarch Beach, California but during the course of the scheme lived in Lodi, California, pleaded guilty to the federal mail fraud and wire fraud charges for operating a Ponzi scheme that featured false promises of large returns to victims who invested in debt obligations and distressed real estate.

In a plea agreement filed in United States District Court, Yotty admitted that he ran several Lodi-based companies that offered bogus investments in corporate debt obligations and in distressed real estate that he and his salespeople said could be “flipped” for substantial profit. Continue Reading…

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Buyer Incentives Result in Guilty Plea

Rachel Dollar —  August 25, 2015 — 1 Comment

Ayman Shahid, 39, Danville, California, pleaded guilty in federal court in Oakland, California to conspiracy to commit bank fraud.  Shahid is the most recent and highest placed individual charged by the Northern District of California U.S. Attorney’s Office as a result of a wide-ranging investigation by the FBI into mortgage fraud in connection with the sale of homes by Discovery Sales, Inc. (DSI), and its affiliates.

Shahid, was the president of DSI, which was the sales arm of affiliated residential construction companies, including Discovery Home Builders and Albert D. Seeno Construction Co.  According to Shahid’s plea agreement, DSI was created to sell new homes built by Discovery Builders, Inc. (“DBI”), Albert D. Seeno Construction Co., Inc. (“AD Seeno”), and other entities affiliated with Albert Seeno III and the Seeno family.  The homes were built in developments throughout the East Bay Area of California, including in Contra Costa and Alameda Counties. Continue Reading…

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Petaluma man drops bid to avoid paying debt in mortgage fraud case

 Posted by Rachel Dollar  onAugust 20, 2015 In Mortgage Fraud ,
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Trial delayed for former land developer accused in investment scheme

Defense attorneys for a former local real estate developer were granted a continuance Wednesday in Solano County Superior Court over a scheduling conflict.

Attorneys in the case of Richard D. Lamphere were ordered back to court Sept. 1 when a new trial date will be selected. A trial could possibly be set for March 2016, according to courtroom discussions.

 Posted by Rachel Dollar  onAugust 20, 2015 In Mortgage Fraud on the web
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Guilty Verdict in Fraudulent Loan Applications Case

Rachel Dollar —  August 12, 2015 — 1 Comment

Erik Hermann Green, 33, Roseville, California was found guilty by a federal jury after a six- day trial of five counts of wire fraud in a mortgage fraud scheme involving fraudulent loan applications.

According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around November of 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses. Continue Reading…

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Guilty Pleas in Delta Homes Case

Rachel Dollar —  August 11, 2015 — Leave a comment

Moctezuma Tovar, 46, Sacramento, California and Sandra Hermosillo, 53, Woodland, California pleaded guilty to conspiring to commit wire fraud in connection with a mortgage fraud scheme.

According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a Sacramento, California based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland, California. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on clients’ behalf. Continue Reading…

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SBA Loan Fraud for Commissions

Rachel Dollar —  August 11, 2015 — Leave a comment

An indictment in a recent SBA case outlines a fraud for commission scheme that could easily occur in mortgage lending.

Jocelyn J. Brown, 59, San Diego, California, a former loan broker for the now-defunct La Jolla Bank, was indicted by a federal grand jury on charges that she paid kickbacks to the bank’s vice president and Small Business Administration lending department manager.

According to the indictment, Brown paid the bribes in return for the banker’s assurance that the loans Brown referred would be approved and funded, and, more importantly, that Brown’s commissions would keep on flowing. Brown allegedly collected tens of thousands of dollars in referral fees from La Jolla Bank, and kicked back a portion to the bank manager, in cash, every time she was paid, the indictment said. Continue Reading…

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CEO Convicted in $169M Ponzi Scheme

Rachel Dollar —  August 10, 2015 — Leave a comment

Michael J. Stewart, 68, San Clemente, California, the CEO of a now-defunct Southern California real estate investment firm, was found guilty of 11 counts of mail fraud following a nine-day jury trial before United States District Judge Cormac J. Carney.  The charges arose out of a real estate scheme that ended with the bankruptcy of the company and hundreds of investors collectively losing as much as $169 million.

Stewart owned and was the chief executive of Pacific Property Assets (PPA), which had offices in Long Beach and Irvine, California. Along with co-defendant John Packard, Stewart created PPA in 1999 to purchase, renovate, operate, and resell or refinance apartment complexes in Southern California and Arizona. Typically, PPA financed property acquisitions through mortgages, and it raised money from private investors to pay for renovations to the properties. After several years, PPA would refinance (or sometimes sell) each property. Continue Reading…

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sovereign citizen

Warehouse Lending Fraud Results in Guilty Plea

Rachel Dollar —  August 4, 2015 — Leave a comment

Brady Bunte, the former owner of an Orange County, California mortgage lending company, pleaded guilty to bank fraud in U.S. District Court in Louisville, Kentucky in a warehouse lending fraud.  Bunte devised a scheme to defraud National City Bank of $12,744,678 of money under its control, by submitting fraudulent funding requests for nonexistent mortgage loans. Continue Reading…

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