Escrow Agent Cops Guilty Plea For Role In Mortgage Fraud, Straw Buyer Flipping Scam Allegedly Involving Hundreds Of Condo Units Throughout California

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

• Donna Demello pleaded guilty in federal court in Oakland [] to conspiracy to commit wire and mail fraud for her role in a mortgage fraud scheme, United States Attorney Melinda Haag announced. At the time of the offense, Demello worked as an escrow officer at Stewart Title in Milpitas, Calif.

• Demello, 44 of San Jose, Calif., [...] and five others, including James Delbert McConville, were charged with conspiracy to commit mail and wire fraud in violation of Title 18, United States Code, Section 1349. The Indictment alleges that McConville purchased hundreds of condominiums throughout California in the names of straw buyers, individuals who were promised $5,000 to $10,000 for the use of their names and credit. The loan applications are alleged to have contained false information about the employment, income, and assets of the straw buyers.

• Demello admitted to participating in the fraudulent approval of approximately 80 loans for condominiums in Escondido, Calif., and San Marcos, Calif. The government has alleged in its filings that loans totaling more than $20 million were approved for the purchase of these condominiums in Southern California, and that more than $11 million of that was paid directly out of escrow to individuals and companies controlled by McConville.

For more, see Escrow Officer Admits Role In Mortgage Fraud.

For the indictment, see U.S. v. McConville, et al.