The California Department of Real Estate has revoked the broker license of Bic Pho along with his affiliated corporations Mariposa Mortgage and Vision Quest 21 for multiple acts of mortgage fraud involving the use of straw buyers and falsified loan applications.
Pho did not only lose his broker license, but the DRE issued a bar order on Aug. 29 precluding him from working in any related real estate business activity such as a finance lender, mortgage banker, a bank, credit union and escrow or title company for three years.
“Bic Pho's fraudulent activities were egregious and illegal, and he should never be allowed to work in real estate again,” said Barbara Bigby, acting commissioner for the California Department of Real Estate. “The fraud perpetrated by Pho and others contributed to the mortgage meltdown, but the revocation of his license and the issuance of the Bar Order ensures he will not broker another mortgage loan.”
According to the DRE, Pho and his corporations, which were based in San Jose, used several straw buyers and phony loan applications to acquire numerous properties throughout Northern California. Through his real estate company Vision Quest, Pho would present a purchase offer to a seller of a single-family home in which the straw buyer would be the occupant of the property.
Once the offer was accepted, Pho would submit a loan application through Mariposa to a lender that contained inaccurate information about the straw buyer's income so the loan would get approved.
The DRE claims that the straw buyer never lived in the property or make any loan payments to the lender.
In the fiscal year ending June 2011, the DRE has revoked or surrendered the licenses of a record 801 individuals. This represents a 13% increase from the 709 revocations and surrenders in 2010.
