Four men have been charged for being involved in a mortgage loan fraud scheme. It involved close to 20 properties in Northern California. The accused made profits worth $20 million through the fraudulent schemes.
Married Couple from Discovery Bay – Masterminds of the Crime
A deal signed with 2 real estate agents enabled a married couple from Discovery Bay to carry out the fraudulent activities. 53 year old Edith Nelson and 76 year old Ronald Nelson got 63 loans approved on properties bought by straw buyers. The names of these buyers were mentioned on loan agreements in place of the couple’s name.
Residential Care Houses also Ran by the Couple
Edith and Ronald Nelson also admitted that they ran several residential care facilities in California. Illegal immigrants were employed in the care units as caregivers. The workers were paid less than the minimum wage. Some of these immigrants stayed in the residential care facilities.
The Nelsons were barred from operating the care facilities by the social services department in California in 1998. The care unit operations violated license regulations. However, the businesses were still run by the couple.
Buyers Paid to Purchase Properties and Handover to Nelsons
Buyers were asked to purchase properties in their own name and transfer the same to the Nelsons later. According to court documents, the buyers were paid heavily by the couple to complete the process of purchasing property. A major role in the fraudulent scheme was played by 68 year old Nelda Asuncion. She runs a real estate agency. Applications for mortgage loans having false information about employment and earnings were prepped by Asuncion. She prepared the loan applications in a way that they were approved by banks easily.
Christopher Morales is an experienced San Francisco Criminal Lawyer. To arrange for a consultation with White Collar Criminal Defense to discuss cases like this, call us.
