San Diego, California Talk Radio Station - 760 KFMB AM - 760kfmbNine charged in large-scale mortgage fraud case

Nine charged in large-scale mortgage fraud case

SAN DIEGO (CNS) - An Escondido real estate agent, his wife and seven other area mortgage-industry professionals were arraigned in federal court in San Diego Wednesday on charges stemming from an alleged multimillion-dollar fraud scheme targeting vulnerable low-income immigrants seeking to buy homes.

According to a criminal indictment, Eric Elegado, 47, owned and operated real-estate and mortgage-brokerage businesses in San Diego and conspired with his co-defendants, whom he employed, to obtain mortgage loans for unqualified buyers through falsified employment and salary information on loan documents.

Elegado allegedly directed the compromised mortgage loans to be processed by his 47-year-old wife, Charmagne, according to the U.S. Attorney's Office.

In order to further the fraudulent scheme, the defendants allegedly created and got others to create false records -- such as W-2s, bank statements, rental-income accountings, ownership papers and bank-deposit documents -- as bogus verification of income listed on false loan applications.

According to the indictment, the fraudulent documents induced lenders to issue more than $50 million in loans. Mortgage companies, lending institutions and financial institutions lost more than $15 million through the alleged scheme, prosecutors charge.

Facing multiple counts of conspiracy, wire fraud, money laundering and criminal forfeiture in the case along with the Elegados are 28-year-old Minh Nguyen of San Marcos; and San Diego residents Theodore Cohen, 54; Alexander V. Garcia, 38; Roderick Huerto, 34; Ramin Lotfi, 36; Roman Macabulos, 38, and Regidor Pacal, 51.

The defendants' next court appearance is scheduled for March 28 before U.S. District Judge Anthony Battaglia.