Golden State Today

California Attorney General Rob Bonta announced the unsealing of a grand jury indictment against 14 individuals involved in a mortgage fraud scheme. The defendants, who include owners of three mortgage brokerage firms and their affiliates, allegedly used fraudulent loan applications and financial documents to secure eight loans totaling $3.69 million. These loans were then used by unsuspecting borrowers to purchase properties across several counties in California.

The majority of the defendants appeared in Los Angeles County Superior Court, where ten were arraigned on charges such as mortgage fraud, receiving proceeds from mortgage fraud, and grand theft. They pleaded not guilty. The remaining defendants will be arraigned later.

Attorney General Rob Bonta emphasized the commitment to justice: “Those who try to scam, defraud, or cheat Californians will be brought to justice.” He acknowledged the collaborative efforts with federal partners in holding the alleged scammers accountable.

Matt Shields, Inspector in Charge of the Los Angeles Division, commented on the impact of these crimes: “Criminal acts of mail fraud...put families at risk by potentially leaving them with unmanageable debt or financial hardship.”

The indictment accuses the owners of First Republic Mortgage, 1st Fidelity Home Loans, and Coastline Properties of misusing their licenses to obtain fraudulent home mortgage loans. It also includes charges against various associates and real estate agents connected to these companies.

Federal agencies collaborated with the California Attorney General’s Office for this investigation. It was revealed that false information regarding clients' income and employment details was submitted alongside falsified documents like pay stubs and W-2 forms. These actions led lenders into approving mortgages that should not have been issued.

The Special Prosecutions Section of the California Department of Justice is handling the prosecution. This section specializes in complex criminal cases related to financial frauds among other issues.

It is important to note that all defendants are presumed innocent until proven guilty.