San Jose Couple Charged In Alleged $8.5 Million Mortgage Fraud Flipping Scam

In California, The San Jose Mercury News reports:

• "[F]ormer Century 21 Su Casa real estate agent [Thien Chi Vuong] and his wife [Thanh Tuyen Tran, aka Kim Tran] were arrested on charges of bilking lenders in a year-long, $8.5 million real estate scam, the latest result of an ongoing investigation of complaints against the East Side real estate brokerage. [...] According to the district attorney's office, Vuong allegedly acted as his wife's real estate agent when she bought 10 houses in San Jose last year for a borrowed $8.5 million. Vuong and Century 21 Su Casa collected commissions and fees on the deals, and Tran rented out the properties at below-market prices, the district attorney's office said in court filings. [... Su Casa] closed its doors and filed for bankruptcy in June under the weight of nearly two dozen lawsuits. [...] The criminal case stems from a civil suit filed earlier this year by Landmark Home Mortgage."

Reportedly, every one of the 10 houses were purchased with 100% financing ("no money down") and five of the properties are already in default, according to prosecutor's office. They were charged with conspiracy and grand theft in a series of real estate deals that allegedly netted them more than $500,000.

For more, see Couple accused of bilking lenders (`Flipping Scheme Alleged In East Bay Housing Market). In a companion story, see How the fraud allegedly worked.

See also, San Jose Realtor, Wife Arrested For Alleged Fraud (KPIX-TV Channel 5, San Jose, CA).