Mortgage Real Estate Fraud

Mortgage real estate fraud includes a range of different offenses that are prosecuted under a number of different California statutes. Under Penal Code 487 PC California’s Grand Theft Law, mortgage real estate fraud is regarded as a grand theft when real property worth more than nine hundred fifty dollars. However, in case the real estate fraud does not correspond to the legal definition of grand theft other statutes might be used to prosecute the wrongdoer, for example California Civil Code 2945.4 (foreclosure fraud), California Civil Code 890 (rent skimming) and others.

• State Penalties: <p>The penalties for California mortgage real estate fraud depend on the statute under which the crime is prosecuted. When it is charged under Penal Code 487 PC, California’s Grand Theft Law, and mortgage real estate fraud may be prosecuted as either a misdemeanor or a felony, depending on the facts of the case. <br/>Possible penalties might be the following: 1) for misdemeanor real estate fraud, the maximum sentence is 1 year in county jail and a fine of up to one thousand dollars, 2) for felony, the term of imprisonment might be 2 or 3 years and a fine of up to ten thousand dollars. The sentence may reach 5 years in prison if you defrauded someone else out of more than sixty-five thousand dollars. Under Penal Code 115 PC, forged deeds are always prosecuted as a felony, which may lead to 16 months, 2 years or 3 years in county jail, and a fine of up to ten thousand dollars. Under Civil Code 2945.4, foreclosure fraud faces the same penalties as those for real estate fraud, depending on whether the fraud is prosecuted as a misdemeanor or a felony. Rent skimming may lead to civil penalties if it was a single act of rent skimming or face the same penalties as for felony real estate fraud if a wrongdoer had prior charges.</p>
• Difference between California state and Federal statutes: <p>Almost all US states have laws prohibiting at least one form of mortgage fraud. This type of crime is generally prosecuted as a class A misdemeanor up to a class B felony, which depends on the severity of the offense. Sometimes federal sentences might be more severe than state sentences for the equivalent mortgage fraud convictions.</p>
• Related Crimes: <p>Foreclosure Fraud, Straw Buyer Schemes, Illegal Property Flipping, Predatory Lending, Forged Deeds, Rent Skimming.</p>
• When is the best time to act?: <p>If you have been charged with mortgage real estate fraud, you should immediately hire a California criminal defense attorney who will help you choose the most appropriate defense strategy. During the trial, the prosecutor will have to prove that you are guilty beyond a reasonable doubt of every element of the crime charged. Thereby, the prosecutor has to persuade the trier that a) you intentionally and knowingly deceived a mortgage lender by making fraudulent representation, b) you acted intentionally to persuade the victim to let you take possession of the loan proceeds and c) the acts of the victim were based on his or her reliance on your false representation. If your defense lawyer succeeds in defeating the prosecutor’s goal by showing that the prosecutor doesn’t meet the burden of proof, the verdict of not guilty will be rendered.</p>
• Successful Defenses: <p>The aim of criminal defense attorney is to find the best legal defense strategy depending on the facts of the case. Your lawyer may choose the legal defense based on of lack of intent, i.e. you didn’t have fraudulent intent and you didn’t know that your actions could lead to the charges against you. Another defense strategy may be based on the statement that you acted with the consent of a property owner. As real estate fraud usually involves multiple people, you may also argue that you were falsely accused of mortgage fraud by people who were trying to escape their own liability.<br> Even if there is no reasonable doubt concerning your guilt, a skilled California mortgage fraud defense lawyer will try to negotiate a plea bargain for a reduced penalty. For example, you may get a felony grand theft charge lowered to a misdemeanor. It is also possible to agree on a deal that involves victim restitution which can let you avoid actual jail time.</p>
• High profile/Government cases: <p>In June 2015, a federal jury found Sacramento area loan broker and real estate agent, Anthony Salcedo, 34, guilty of one count of conspiracy to commit mail fraud and four counts of mail fraud for his involvement in a mortgage fraud scheme. Anthony Salcedo was a licensed real estate agent and mortgage broker in 2006. When working with licensed mortgage brokers Sean McClendon and Anthony Williams, Salcedo paid kickbacks to the buyers and to McClendon outside of escrow. The payments weren’t disclosed to the lenders as part of the purchase and sale agreements, and the buyers’ income and assets were falsified in order to qualify for the loans. Co-defendant Sean McClendon pleaded guilty and is awaiting sentencing. Co-defendant Anthony Williams pleaded guilty and was sentenced to two years and nine months in prison. Salcedo was scheduled to be sentenced on September 10, 2015. The maximum statutory penalty for mail fraud and the related conspiracy might be 30 years in prison, a $1 million fine, or both.</p>
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