The U.S. Attorney's Office for the Eastern District of California has indicted Robert Farrace of Modesto, Calif., on charges of wire fraud in connection to a short-sale scheme.
Farrace, a real estate attorney, allegedly created a limited liability company under his friend's name to submit short-sale offers to a bank that held mortgages on two foreclosed properties he owned. One sale was completed by the bank, the other halted by law enforcement and the bank.
The indictment came about as a joint investigation between the Federal Housing Finance Agency, the FBI, and the Stanislaus County District Attorney's Office.
Farrace has been charged with three counts of wire fraud and potentially faces 20 years in prison and a $250,000 fine if convicted.
