Seven indicted in multimillion-dollar mortgage scheme

by Ryan Smith30 Jun 2015
Seven California residents have been indicted for allegedly taking part in a massive mortgage fraud scheme.

The seven Californians – Jyoteshna Karan, Praveen Singh, Mahendra Prasad, Phul Singh, Sunita Singh, Nani Isaac and Martin Bahrami – allegedly conspired to defraud mortgage lending companies and financial institutions by making false statements on loan and short sale applications to obtain properties both in their own names and in the names of others.

According to the indictment, the conspirators worked the scam on at least 25 properties, costing lenders more than $3 million.
“Early this morning, SIGTARP agents and our law enforcement partners arrested or served summons on seven individuals who stand charged with operating a fraud scheme that cost financial institutions, including multiple TARP banks, millions of dollars in losses,” said Christy Romero, Special Inspector General for TARP. “The seven allegedly conspired to falsify information on mortgage loan and short-sale applications submitted to multiple financial institutions in order to obtain properties across Eastern California. SIGTARP and our law enforcement partners will aggressively investigate allegations of fraud perpetrated at the expense of taxpayers’ TARP bank investments and bring accountability to those who engage in these schemes.”

If convicted, each defendant could face up to 30 years in prison and a fine of up to $1 million.
 

COMMENTS

  • by | 6/30/2015 12:26:13 PM

    it's too bad that they can't go after the individuals that ran the financial institutions that were at ground zero with the same fervor.

  • by A | 6/30/2015 4:04:53 PM

    TARP is the big ripoff. One securities company out of New York told me that his company was 'made' to take the TARP, that they didn't need it or want it. There were actually only a few that did need it and places like Wells Fargo among others were made to take the money and pay it back with INTEREST. So if the banks and securities companies that took the TARP are or have already paid it back with interest why are tax payers paying for it too? That is the real scam and fraud. Wells Fargo paid theirs back a long time ago with INTEREST! Where is the interest going? Where are the earnings from fannie mae and freddie mac going? In a contract there is usually something that states that management will be replaced or that the 'partner' has the right to buy out or take over in the event of failure. The failure was induced by the Clinton Administration 'every American should own a home', remember that speech? These new programs caused fannie and freddie to fall allowing the Govt to take them over. I would think it was planned. If it were me and I wanted to take over that is exactly how I would do it. The US government is meant to govern they are not meant to own publicly traded companies. The government doesn't post a quarterly report so we don't know where are TAX dollars are going or how much we are paying in cumulatively or where it goes exactly. The Government want's accountability, I would like to see some from them:) There were no government owned publicly traded companies before Obama now there are three though freddie and fannie were already in the works.

  • by A Bigger Better Mortgage | 6/30/2015 4:39:18 PM

    p.s. A- Forcing bail out funds onto entities who refused it and were strong armed into taking it & made to pay it back with interest is not acting as government. Extortion practices are more mafia like than government. It's the 'do as I say not as I do' rule, lol.

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