Sacramento Feds Bag Two In Alleged Mortgage Scam Targeting Cambodian Immigrants; Home Buyers Left With Unaffordable House Payments, Facing Foreclosure

From the Office of the U.S. Attorney (Sacramento, California):

• United States Attorney Lawrence G. Brown announced [...] that a criminal complaint was filed this morning charging IRENE SOTIRIADIS, 23, and HELEN SOTIRIADIS, 49, both of Manteca, with conducting a mortgage fraud scheme from March 2006 through November 2007 that caused losses to lenders estimated at approximately $5 million.

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• According to [the press release], an affidavit filed by a special agent of the FBI alleges that HELEN and IRENE SOTIRIADIS recruited as many as 25 members of the Cambodian immigrant community to purchase homes they could not afford in and around Stockton and Modesto. HELEN and IRENE SOTIRIADIS promised the Cambodians that after one initial high monthly payment, the homes would be refinanced to a payment of only $1,500 per month. After the initial monthly mortgage payments of $4,000 came due, HELEN and IRENE SOTIRIADIS refused to return phone calls to the victims, according to the affidavit. Most of the homes quickly fell into foreclosure.

For the entire U.S. Attorney press release, see Manteca Mother-Daughter Real Estate Team Arrested In Estimated $5 Million Mortgage Fraud Scam.