Bank Workers, Mortgage Brokers Among 6 Charged In $4M Fraud Scheme
LOS ANGELES (CBS) — A half-dozen professionals from across the Southland financial services industry face federal charges for their alleged roles in a $4 million mortgage fraud scheme, prosecutors said Friday.
The allegations against two former bank employees, a mortgage broker and three others include crafting bogus loan applications and bribery in order to defraud lenders, according to the U.S. Attorney's Office.
Anthony Lewis, 38, of the San Fernando Valley, Maria Arriaza, 33, a former escrow officer from Palmdale, and Deon Jackson, 36, a mortgage broker from Gardena, are charged with wire fraud and conspiracy.
Jennifer Le, 29, an ex-loan processor from the South Bay, is charged with conspiracy.
Matthew Balsz, a 31-year-old former U.S. Bank employee from the South Bay, and 34-year-old Freddy Lentz, a former Bank of America employee from the Antelope Valley, are charged with accepting bribes to assist the scheme, federal prosecutors said.
The U.S. Attorney's Office alleges that Lewis and co-conspirators obtained about $4 million from various financial institutions by lying on loan applications used to purchase homes in the names of straw buyers.
Lewis found houses for sale, and gave bogus loan applications to Jackson and Le for processing, prosecutors allege.
As a mortgage broker, Jackson allegedly reviewed the documents and told Lewis what further information was necessary to qualify straw borrowers for loans. Lewis then obtained fake bank statements and other forms, while Jackson and Le submitted the phony loan applications to lenders, prosecutors allege.
Once the loans were approved and the funds wired to Arriaza's Diamond Clear Escrow in Granada Hills, she disbursed money intended for the purported buyers to co-conspirators at Lewis' orders, prosecutors allege.
In order to conceal the true nature of the disbursements, Arriaza allegedly prepared false settlement statements.
Le, Balsz and Lentz are expected to make their initial Los Angeles federal court appearances on Monday.
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