DHS employee charged with wire and mortgage fraud

A federal law enforcement officer and military veteran was arrested and charged in the U.S. District Court for the District of Massachusetts with wire fraud and making false statements to a mortgage lender. 

Customs and Border Protection Officer Schleider Aristhyl applied for a $478,000 Department of Veterans Affairs-backed mortgage for a property in Rhode Island. He submitted two falsified VA documents to a private lender, one claiming he had a 100% VA disability rating with monthly benefits exceeding $3,000. In reality, he had no disability rating and was receiving no monthly benefits at the time, according to the charging documents.

To qualify for a VA loan, a veteran must meet specific active-duty service minimums and discharge standards. The VA issues a Certificate of Eligibility confirming that the veteran qualifies for the program. 

"Aristhyl knew these representations were false because he had previously applied for a service-connected disability rating from the VA on or about November 16, 2023, and the VA had denied his claim," read the indictment.

He also falsified a funding fee expectation, avoiding paying $10,000, which the lender unknowingly paid out of pocket, according to the indictment. The defendant would not have been eligible for the mortgage loan had the alleged VA monthly disability income been excluded from his total monthly income calculation. 

Based on these documents, the lender issued the loan on October 25, 2024, and the VA issued a loan guarantee backing a portion of the mortgage on January 21, 2025. 

Because the mortgage was originated under false pretenses, the lender faced regulatory risk, compliance review, and potential repurchase demands. The federal government is now seeking a full criminal asset forfeiture and the seizure of the Rhode Island property. 

Aristhyl was placed on administrative leave, according to a DHS spokesperson. The U.S.  Attorney's Office for the District of Massachusetts as well as Aristhyl's lawyer did not comment further. 

Each count carries a maximum statutory penalty of up to 30 years in prison, 5 years of supervised release, and a $250,000 fine. 

Mortgage fraud a concern

Mortgage fraud risk dropped 9% compared to last year, but there are rising concerns of artificial intelligence and fake document risk. Image-editing tools make creating convincing fake bank statements, pay stubs, and tax forms fast and accessible. 

Phony documents are not limited to VA loans either, as an accountant filed fake tax returns to a lender who then originated the loan based on those documents. Existing lender controls are often lacking and closing protection letter validation-related errors are very common. 

Documentation fraud occurs not only on the borrower side, but also through originators bypassing internal compliance checks. Most recently, a top-producing loan officer pleaded guilty to bank fraud by misleading financial institutions that properties being purchased were primary residencies, which allowed them to secure lower interest rates and more favorable loan terms.