Two men plead guilty to $ 15 million mortgage fraud scheme
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Two men involved in a $ 15 million mortgage fraud scheme in Orange County have pleaded guilty and are expected to be sentenced on Jan. 10, according to court records obtained on Friday.
Jimmy Phan, 47, and Vinh Phan, 46, both pleaded guilty on Thursday, court records show. The Phan are not related.
Co-accused Stephen Nguyen, 59, is a fugitive.
Jimmy Phan and Vinh Phan pleaded guilty to several counts of robbery, mortgage fraud, attempted deposit of a forged or counterfeit instrument and admitted sentence enhancements for aggravated white collar crime in excess of $ 500,000.
The defendants are charged with acquiring property “and using it as collateral to borrow large sums of money from short-term, high-interest lenders and individuals,” a county prosecutor investigator said. Orange in a bail application.
Some of the payments were made, but the lenders were unaware that the defendants would “register the false transfers (an instrument indicating the loan had been paid),” prosecutors said.
“Then they would take advantage of the title exemption from the first loan and get a second loan,” prosecutors said.
“The second lender would finance the loan with the belief that the property was free and clear,” prosecutors said.
Second loans have sometimes been used to finance the acquisition of a property with an “arm’s length buyer”, who was “in fact colluding with the seller to inflate the value of the property or to give an appearance of legitimacy” , prosecutors said.
Prosecutors allege 12 victims were duped into 10 separate real estate deals with total losses of around $ 15 million.
Two men plead guilty to $ 15 million mortgage fraud scheme was last modified: December 17, 2021 through
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