Real estate agent Eric Elegado and wife Charmagne Elegado, a former mortgage account executive, were sentenced to 41 months each in prison for the scam, according to an NBC report.
Prosecutors say that from 2005 to 200, the Elegados and seven co-conspirators secured $50 million in fraudulent mortgage loans. The conspirators obtained the loans primarily through New Century Mortgage, Charmagne Elegado’s employer, according to NBC. They obtained the loans for unqualified buyers by falsifying income and asset information and creating phony W-2s, pay stubs and bank statements, prosecutors said.
The Elegados were receiving at least $40,000 per month in commissions from the fraudulent loans, according to the NBC report. They used their ill-gotten cash to pay for expensive houses, luxury cars and pricey jewelry.
The other seven co-conspirators have all pleaded guilty to their roles in the scam, according to NBC. All seven fingered the Elegados as the ringleaders of the fraud.
The Elegados are due back in court on May 27 for a restitution hearing, at which the government is expected to seek more than $10 million, NBC reported. At that time, they will be required to surrender themselves and begin their prison terms.
A California couple has been sentenced to more than three years in prison for orchestrating a $50 million mortgage fraud scam.