Real Estate Operator Gets Four Years For Running Short Sale, Flipping Scheme; Admits To Acquiring Control Of Financially 'Underwater' Homes, Then Using Straw Buyers To Retain Possession Of Premises While Fraudulently Duping Lenders Into Taking 'Haircuts' On Their Outstanding Loan Balances

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

• Anthony Keslinke, 48, of Danville, was sentenced to four years in prison [] for his leadership role in a large-scale bank fraud conspiracy and a separate money laundering conspiracy, [...].
  
  Keslinke pleaded guilty in May of 2015 to one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
  
  In pleading guilty, Keslinke admitted that he used straw buyers to purchase real estate throughout Northern California between 2011 and 2014. Keslinke identified properties, including his own properties, that were potential candidates for a “short sale.” A “short sale” is a sale of real estate in which the sale proceeds are less than the balance owed on the mortgage loan pertaining to the property and often occurs when a borrower cannot pay the mortgage loan.
  
  In furtherance of the scheme, Keslinke submitted offers to the financial institutions on behalf of straw buyers. In order to induce a bank to accept a short sale offer, Keslinke would draft fraudulent financial hardship letters and submit them on behalf of the seller of a property.
  
  In addition, in order to give the appearance to the financial institutions that the properties were worth significantly less than true fair market value, Keslinke often altered engineering and pest reports associated with the properties. Moreover, in furtherance of his scheme, Keslinke often altered bank account documents to create the appearance that the straw buyers had sufficient funds to purchase the properties in cash.
  
  Once a financial institution accepted a particular property for a short sale, Keslinke used his own funds to purchase the property in the name of the straw buyer.
  
  After a short sale was completed on a particular property, Keslinke maintained control of the property and often sold the property for a significant financial gain. Keslinke admitted using this mortgage fraud scheme to orchestrate the short sale of properties in Danville, Walnut Creek, and Kings Beach, California.

Source: Danville Real Estate Agent Sentenced To Four Years In Prison For Bank Fraud And Money Laundering Scheme.