Xue Heu, the man behind the schemes was also ordered to pay $1,116,366 in restitution to his victims and will spend three years under supervised release following his jail sentence.
“Heu was sentenced to 63 months in federal prison for his role in a real estate fraud scheme that (he) and others advertised as a business selling ‘TARP-owned,’ foreclosed properties to individuals interested in investing in the real estate market,” Christy Romero, special inspector general for the Troubled Asset Relief Program (SIGTARP) said in a release. “Heu solicited investors through LinkedIn and guaranteed them a certain positive return on their investments.”
Between August 2007 and October 2013, Heu solicited individuals to invest in real estate business that bought and sold real estate according to court documents. Heu’s scheme involved fraudulent documents, including forged deads and resulted in $412,896 in fraudulent money transfers.
In a separate scheme between October 1, 2013 and December 31, 2013, Heu and other participants defrauded individuals under the guise of investing in the Troubled Asset Relief Program.
“Heu and a co-defendant lured investors into placing funds into escrow accounts established by another co-defendant and then converted the money to their own use. In his plea agreement, Heu admitted he was responsible for a loss to victims of $762,897,” according to the release.
A Modesto, Calif. man will spend the next five years behind bars for real estate investment frauds perpetrated in two states.