Fontana Woman Convicted in Mortgage Fraud Case

Lisa Lievanos of Fontana, Calif., has been convicted of charges related to her being a straw borrower in a mortgage fraud scheme that fraudulently collected more than $1 million in loan proceeds. Lievanos is the fourth defendant in this case. Angela Cotton, who ran a bogus title company, pleaded guilty and is scheduled for sentencing on June 15. Terral Toole pleaded guilty and is scheduled for sentencing on June 1. Miles Davis, a loan processor, pleaded guilty and was sentenced to three years of probation, including six months of home detention. The evidence presented at Lievanos' trial showed that Cotton found properties in Rancho Cucamonga and, with the assistance of real estate professionals and people such as Lievanos who agreed to sell their personal information, fraudulently "purchased" one of the properties and obtained a $635,000 loan. A second loan involved a refi of Lievanos' residence, which netted the defendants $526,500. In the loan application, Lievanos included false employment information, income information, occupancy declarations, and rental agreements relating to her financial condition. On the loan applications, the four defendants allegedly included false employment information. Cotton established fraudulent escrow companies to complete the fraudulent sale transactions. As a result of the scheme, banks suffered losses of nearly $2 million. U.S. District Judge Florence-Marie Cooper has scheduled sentencing for Lievanos for July 13.