Sacramento Feds Indict Five In Alleged Straw Buyer Mortgage Scam

In Sacramento, California, KCRA-TV Channel 3 reports:

• A federal grand jury returned an eight-count indictment Thursday charging five people with conspiracy to commit bank fraud and other related charges in a mortgage fraud scheme, [Eastern District of California] U.S. Attorney McGregor Scott said.

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• [Robert] Martinson and [his wife, Sheryl] Hayden operated a branch of MAC Real Estate Services [...]. Scott said the couple purchased dozens of homes as investment properties, [...] then recruited straw buyers and others to purchase the homes as the housing market began to slow. Scott said loan processors Rick and Melissa Villegas helped Martinson create fraudulent loan applications, and also helped Martinson and Hayden by paying "substantial kickbacks" to at least one straw buyer. [Kathleen] Delapp, a loan processor for MAC Real Estate Services, forged signatures and knowingly forwarded at least one false loan application, Scott said.

• According to the indictment, after the lenders funded the loans, Martinson and Hayden [...] would receive substantial loan proceeds from the sales of the homes, and Delapp and Rick and Melissa Villegas would receive fees and other compensation as a result of the fraud.

For the story, see 5 Charged In Mortgage Fraud Case (2 Arrested, 2 Previously Released On Bond).

See this press release for a summary of recent mortgage fraud prosecutions by U.S. Attorney's office for the Eastern District of California.

Thanks to Tim McDaniel for the tip on the story.