CALIFORNIA MAN PLEADS GUILTY TO THREE FRAUD SCHEMES INCLUDING MORTGAGE FRAUD AND RIPPING OFF HIS OWN PARENTS
On Nov. 26, Kaveh Vahedi agreed to plead guilty to federal fraud charges, admitting that he ran three separate scams, includes a Ponzi scheme that defrauded 30 families out of more than $8 million. He also admitted to a mortgage fraud scheme that submitted hundreds of falsified loan applications to banks from his brokerage firm. Vahedi also acknowledged stealing more than $700,000 from his parents by draining their bank accounts and taking out a loan on their home.
Vahedi entered into a plea agreement with prosecutors to plead guilty to one count of wire fraud in connection with the Ponzi scheme and one count of conspiracy in relation to the mortgage fraud scheme. Vahedi also agreed to plead guilty to one count of bank fraud to resolve a previously filed criminal case related to the fraud against his parents.
Once he pleads guilty to the three felony counts stemming from the three schemes, Vahedi will face a statutory maximum sentence of 55 years in federal prison.
According to the plea agreement, Vahedi ran an elaborate Ponzi scheme through his investment company, KGV Investments, which he used to give victims the appearance that he was a successful businessman who made hundreds of millions of dollars brokering international bond deals. He also told investors that his contacts gave him unique opportunities to invest in real estate development projects overseas, including commercial developments in China and Dubai, as well as large real estate projects in the United States. Vahedi admits in the plea agreement that he convinced more than 30 investors to give him approximately $12 million to invest on their behalf. Instead of investing the money in bond or real estate deals, Vahedi used the investors’ money for his own benefit, including making monthly mortgage payments on several properties, luxury vehicles and private school tuition. Ultimately, investors suffered losses of more than $8 million.
Vahedi also ran a successful Glendale-based mortgage brokerage, Countrywide Financial. (There was no connection between Vahedi’s Countywide Financial and the Calabasas-bssed Countrywide Home Loans.) Vahedi admitted in his plea agreement that he submitted at least 250 fraudulent loan applications that included falsified employment and income records to these lenders. Relying on the lies in the loan applications, as well as the forged records that were provided by Vahedi in support of these applications, lenders were duped into approving and funding millions of dollars in loans.
In addition to these crimes, Vahedi also agreed to plead guilty to one bank fraud count in a pending indictment against him related to a fraud he perpetrated against his own family. In his plea agreement, Vahedi admits that he posed as his father in order to withdraw approximately $250,000 from his parents’ bank account. He also impersonated his father and took out a $493,000 home equity loan against his parents’ home. (usattycdca112812)
Now here is a nice unprejudiced guy. He is unbiased and will rip off his own parents as well as strangers. The one possible nice thing possible is if the parents have a good lawyer they should be able to get the forged home equity lien set aside as well as suing the notary that notarized it possibly. It is also possible the parents might get the money back from the bank if they made a timely claim.
FLORIDA MAN PLEADS GUILTY TO MORTGAGE FRAUD
On Nov 30, 2012, Arthur R. Seaborne, 69, pleaded guilty to conspiracy to commit bank fraud that resulted in more than $6 million in losses for banks. He faces a maximum penalty of five years in federal prison at his sentencing hearing, scheduled for Jan. 24, 2013.
Starting in March 2003 running through July 2008, Seaborne and others conspired to commit bank fraud and he used several corporate entities to perpetuate the fraud scheme. Seaborne marketed a "no money down" residential purchase program that made loans to his clients, enabling them to make down payments to purchases of residential properties.
Then, Seaborne and his co-conspirators prepared and submitted fraudulent mortgage loan applications to lenders for the clients that did not specify that the down payments had been loaned. The applications also usually overstated assets and understated liabilities. Some loan applications also said the properties were to be the borrowers’ primary residences, when in fact they were investment properties. Some of the loans on the residential properties went into default, and the losses incurred by the lenders on 49 such residential properties totaled $6.8 million. (tpo12112)
Notice: The loans occurred in 2003 and prosecution is nine years later in 2012. Notice further, that the conviction includes fraud for stating the property would be owner-occupied when in fact it was investment property. If anyone has this issue you may want to consider consulting an attorney to see where your risks of indictment may be.
KENTUCKY MAN GETS 15 MONTHS IN PRISON FOR MORTGAGE FRAUD
Dane Little was sentenced in United States District Court by District Judge Charles R. Simpson III to 15 months in prison and ordered to pay $487,111 in restitution after pleading guilty to engaging in a conspiracy to commit bank and wire fraud. In court, Little admitted to intentionally devising a scheme to defraud various banks and mortgage lenders by submitting fraudulent mortgage loan information in the purchase of 19 properties in Louisville, Kentucky and Jeffersonville, Indiana, totaling nearly $5 million dollars.
According to the indictment returned by a federal grand jury between Nov. 1, 2006 and Aug. 30, 2008, Little and his co-defendants perpetrated a fraudulent scheme against various banks and commercial lending companies. The indictment claims that they submitted applications and other documents for loans which contained false and fraudulent information, including false employment information, false and fraudulent bank account balances, and false representations that down payments were being made toward purchases of properties.