Hawaii Feds Indict Five In Alleged Straw Buyer Foreclosure Rescue Scam

In Honolulu, Hawaii, the Honolulu Advertiser reports:

• Five people have been indicted on federal charges in a scheme in which they allegedly profited from home mortgage loans that were obtained by falsifying applications, court documents show. An indictment handed down May 15 and unsealed the next day alleges that John Gilbert Mendoza, Antonio Alcantara Jr., Ira Altwegg, Albert A. Alimoot Jr. and Evan M. Koizumi illegally obtained more than $400,000 from lenders after securing mortgage loans under false pretenses. They have been charged with conspiracy to commit mail fraud, wire fraud and making false statements on loan applications.

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• The [alleged] schemes began when Mendoza and unidentified co-conspirators found homeowners in financial trouble facing possible foreclosure, the indictment said. According to the indictment, the defendants pitched the distressed homeowners a plan that would allow them to stay in their home while making money in exchange for "the owner's acquiescence in a sham real estate sale." The owners agreed to transfer the deed of the properties to the defendants.

• Separately, Mendoza allegedly recruited "straw buyers" of the properties, promising them cash if they would agree to fill out fraudulent mortgage applications. The indictment defines straw buyers as "a third party who is willing to purchase a property without any intent to occupy the property." Alimoot and Koizumi agreed to act as straw buyers and lied on loan applications by misrepresenting their income, the indictment said.

For more, see Five indicted in Hawaii mortgage scam (Suspects get $400K in mortgage scheme; FBI gets 5 indictments).

See also:

• KHON-TV Channel 2: Mortgage scammers caught in federal sweep,
• Star Bulletin: Mortgage fraud crackdown (More than 80 people in Hawaii's mortgage loan industry are under FBI investigation. Five have already been indicted).

To view the charges, see Indictment - U.S. v. Mendoza, et. al.