Sacramento Feds Indict Two In "Cash Back" Straw Buyer Scam Involving $11.3M+ In Fraudulently Obtained Loans, 16 Homes

In Northern California, The Sacramento Bee reports:

• A "cash back" mortgage swindle involving in excess of $1 million in stolen funds and more than $11.3 million in fraudulently obtained loans on 16 homes in the Sacramento region was alleged Friday in a federal indictment. Derek Davis of Sacramento, described in court records by those who have dealt with him as a smooth-talking con artist, and Dino Rosetti, a Roseville mortgage broker, are charged in the indictment. They are accused of inflating purchase prices, securing 100 percent financing with bogus paperwork, and then kicking back part of the money to straw buyers.

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• The kickbacks were either concealed from the mortgage lenders or falsely disclosed as credits meant for improvements to the properties, the indictment states. The kickbacks ranged from approximately $42,000 to nearly $138,000 and totaled "in excess of $1 million," [Assistant U.S. Attorney Courtney] Linn said.

For more, see Fraud charged in home loans in three counties.

See also, U.S. Attorney press release: Two Indicted In "Cash Back" Mortgage Fraud Scheme.

Thanks to Tim McDaniel for the heads up on the story.