3 Californians sentenced to prison over $20m mortgage fraud scheme

by Francis Monfort17 Jul 2018

Three members of a California family have been sentenced to prison over their roles in a $20 million mortgage fraud scheme, the Department of Justice announced.

Dorothy Matsuba, her daughter Jamie Matsuba, and her husband Thomas Matsuba were sentenced to 240, 135, and 168 months in prison, respectively, by District Judge R. Gary Klausner of the Central District of California.

The three owned and/or managed foreclosure rescue companies in the Los Angeles area. From January 2005 to August 2014, the three, along with other persons, engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales.

Evidence presented at trial showed that the conspirators did not pay the mortgages and even rented out the properties to third parties. They also submitted false and fraudulent documents to lenders and servicers to delay foreclosure. Additionally, the conspirators were found to have obtained mortgages in the names of stolen identities and used other tactics such as filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties.

Dorothy admitted her role in the scheme in December. Following trial, Jamie and Thomas were also convicted for their participation.

In addition to the prison sentences, Klausner ordered the three to serve three years of supervised release. Restitution and forfeiture will be decided at a hearing in August.

Jane Matsuba-Garcia, another defendant charged in the matter, previously pleaded guilty and is awaiting sentencing. Meanwhile, defendant Young Park is a fugitive. In related cases, Jason Hong and Ryu Goeku previously pleaded guilty and are awaiting sentencing.

 

Related stories:
PwC slapped with $625 million penalty for failing to detect massive mortgage fraud
Bank slapped with $96.2 million penalty for fraud

 

 

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