$3.6 Million Fraud Plot Used Several Mortgages on Same House

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Not the home in question but an amazing facsimile.
A married couple from Fountain Valley and a Newport Coast mortgage broker are scheduled to be arraigned in a Santa Ana courthouse this morning for their alleged roles in a $3.6 million fraud scheme that involved several mortgages being taken out of the same property without notifying lenders, the Orange County District Attorney's office announced.

Arrest warrants have been issued for two other people in the case. 

The five illegally secured several mortgage loans on the same property by falsifying and omitting information on loan applications, according to a 23-count complaint, which the DA details follows after the jump . . .

December 14, 2009

MARRIED COUPLE AND MORTGAGE BROKER TO BE ARRAIGNED FOR $3.6 MILLION MORTGAGE FRAUD SCHEME BY TAKING OUT MULTIPLE MORGAGES ON THE SAME PROPERTY WITHOUT DISCLOSING TO LENDERS
*Warrant issued for two other defendants in this case

SANTA ANA - A married couple and their mortgage broker will be arraigned tomorrow for defrauding over $3.6 million from banks in a mortgage fraud scheme by illegally securing several mortgage loans on the same property by falsifying and omitting information on loan applications. A 23-count complaint was filed Nov. 24, 2009, against five defendants.
Nafees Quidwai, Sabhia Quidwai, and Mailan Tran are each being held on $500,000 bail and must prove that the money is from a legal and legitimate source before posting bail. They are scheduled to be arraigned tomorrow, Dec. 15, 2009, at 8:30 a.m. in Department C-55, Central Justice Center, Santa Ana. A $500,000 warrant has been issued for the arrests of Cuc Doan and Trieu Nguyen.

Defendant name (property #): age, residence, charges, and maximum exposure.

Cuc Huong Doan (Property #1): 37, Santa Ana, 2 felony counts of grand theft, 2 felony counts of recording false and forged instrument, 1 felony count of conspiracy to commit grand theft, sentencing enhancements for loss over $100,000, aggravated white collar crime over $500,000 and $100,000, property damage over $150,000, $1,000,000, and $2,500,000. Maximum exposure is ten years in state prison if convicted.

Trieu Thi Nguyen (Property #2): 59, Rosemead, 4 felony counts of grand theft, 4 felony counts of recording false and forced instrument, 1 felony count of conspiracy to commit grand theft, sentencing enhancements for loss over $100,000, aggravated white collar crime over $500,000 and $100,000, property damage over $150,000, $1,000,000, and $2,500,000. Maximum exposure is    12 years and 8 months in state prison if convicted.

Nafees Ahmad Quidwai (Property #3): 54, Fountain Valley, 5 felony counts grand theft, 5 felony counts of recording false and forged instrument, 1 felony count of conspiracy to commit grand theft, sentencing enhancements for loss over $100,000, aggravated white collar crime over $500,000 and $100,000, property damage over $150,000, $1,000,000, and $2,500,000.        Maximum exposure is 14 years in state prison if convicted.

Sabiha Quidwai(Property #3): 34, Fountain Valley, 5 felony counts of recording false and forged instrument, 1 felony count of conspiracy to commit grand theft, sentencing enhancements for loss over $100,000, aggravated white collar crime over $500,000 and $100,000, property damage over $150,000, $1,000,000, and $2,500,000. Maximum exposure is 10 years and 8 months in state prison if convicted.

Mailan Thu Tran (Property #1, #2, and #3): 45, Newport Coast, 11 felony counts of grand theft, 1 felony count of conspiracy to commit grand theft, sentencing enhancements for loss over $100,000, aggravated white collar crime over $500,000 and $100,000, property damage over $150,000, $1,000,000, and $2,500,000. Maximum exposure is 14  years and 8 months in state prison if convicted.

Tran, a mortgage broker who previously owned Money One Lending in Westminster, is accused of being the mastermind of the mortgage fraud scheme. A mortgage fraud scheme is a fraudulent scheme in which defendants deliberately omit or misrepresent facts with the intention of defrauding lenders. In this scheme, the defendants are accused of securing multiple mortgages for each property without disclosing that information to the banks. The banks would not have approved the loans if they had the true information.

Property #1
On Oct. 2, 2006, defendants Tran and Doan are accused of applying for and receiving the money from a $250,000 mortgage loan from Bank of America on Doan's $407,000 home in Corona, despite already having a mortgage on the Riverside County property. The two defendants are accused of falsifying the mortgage application by reporting fictitious occupational information for Doan. They are accused of claiming on the loan application that Doan was an executive at a fictional company named Westcoast Biolab making a six figure salary. Two days later, the defendants are also accused of applying for and receiving an additional fraudulent $235,000 mortgage loan from Wells Fargo for the same home owned by Doan. Tran and Doan are accused of falsifying the application by not reporting Doan's two other mortgages and falsely providing the same fake company, job, and salary information. The defendants are accused of receiving approximately $500,000 from the bank in cash, checks, or wire transfers for personal use.

Property #2
Between Feb. 1, 2005, and Feb. 5, 2007, defendants Tran and Nguyen are accused of engaging in a similar fraudulent scheme by applying for four additional mortgage loans at four different banks for Nguyen's Rosemead home in Los Angeles County. These two defendants are accused of falsifying Nguyen's occupational information on all four applications and failing to report any of the mortgage loans previously taken out on the home. Tran and Nguyen are accused of listing the same fictional company, job title, and salary that was used on Doan's two mortgage applications. These defendants are accused of receiving the money from the four mortgage loans from Mortgage It, Bank of America, Cal National, and Washington Mutual for Nguyen's property, which was initially appraised at $550,000. The banks approved the loans based on the fraudulent information. The defendants are accused of receiving approximately $1.5 million from the bank in cash, checks, or wire transfers for personal use.

Property #3
Between Feb. 1, 2007, and Feb. 22, 2007, defendants Tran and Nafees Quidwai are accused of applying for and obtaining five additional mortgages at five different banks for Quidwai's $900,000 home in Fountain Valley. Tran and married couple Nafees and Sabiha Quidwai are all accused of falsifying the mortgage applications by reporting fictitious occupational information for Nafees Quidwai. These defendants are accused of using the same false company name, job title, and salary for Nafees Quidwai as for the other defendants on their applications at Bankers West Funding Corporation, California National Bank, Wells Fargo, Bank of America, and Washington Mutual. The banks approved all five of the loans based on the fraudulent information. The defendants are accused of receiving approximately $2 million from the bank in wire transfers for personal use. Tran is accused of accepting $140,000 from the Quidwais for obtaining the loans.

In January 2008, the fraud was discovered by bank investigators, who noticed discrepancies in the defendants' loan applications. Further investigation by the Federal Bureau of Investigation (FBI) revealed that the company the defendants listed on their applications was not real. In September 2009, the FBI referred the case to the Orange County District Attorney's Office (OCDA) for further joint investigation.

On Dec. 8, 2009, Tran was arrested by Newport Beach Police outside of her home. That same day, the Quidwais were arrested by Fountain Valley Police outside of their home. A warrant has been issued for the arrests of Doan and Nguyen.

The OCDA is prosecuting a consolidated case for all three counties based on the common scheme used and because Tran's office is located in Westminster. The investigation is ongoing. Anyone with additional information is encouraged to contact Supervising District Attorney Investigator Ron Frazier at (714) 347-8691.

Senior Deputy District Attorney
Pete Pierce of the Major Fraud Unit is prosecuting this case.

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