Daly City man pleads guilty in $55 million mortgage fraud scheme
A real estate professional from Daly City has been convicted for his role in a home mortgage fraud scheme involving more than $50 million in loans, federal officials announced.
According to the U.S. Attorney's Office for the Northern District of California, 52-year-old Tjoman Buditaslim pled guilty in federal court to wire fraud conspiracy Wednesday. Three others have also pled guilty to the scheme, in which 102 home mortgages worth more than $55 million were originated based on false and fraudulent loan application information.
"These defendants used their professional knowledge of the mortgage industry to perpetrate a fraud on unsophisticated home buyers, funneling these victims into loans for which they were not qualified," U.S. Attorney Ismail Ramsey said in a statement. "My office is committed to protecting all victims of fraud, whether federal agencies, Northern California residents, or—as happened here—both."
Buditaslim admitted in his plea agreement that between 2018 and 2022 he worked with the coconspirators to originate the loans and to create fraudulent documents, including judicial divorce decrees, alimony and child support checks, bank statements and loan applications.
The Daly City resident also admitted that many of the mortgages were insured by the Federal Housing Administration and that the agency lost more than $486,000 to keep some of the loans from going into foreclosure.
Last week, two of Buditaslim's coconspirators pled guilty in the case. Jose Tellez, a 27-year-old from San Jose, admitted to conspiracy to commit wire fraud for his role in the scheme.
Prosecutors said Tellez, who worked as a loan officer at a mortgage company, admitted that he originated 30 of the loans worth $17 million based on what he knew was false and fraudulent income information submitted by Buditaslim and others. He also admitted to failing to flag applications that contained false information.
Jose de Jesus Martinez, a 59-year-old real estate agent from Daly City, also pled guilty to conspiracy to commit wire fraud.
In his plea agreement, Martinez admitted to referring clients he knew wouldn't qualify for mortgages to Buditaslim. For his role in the scheme, his clients received 49 loans worth about $27.7 million and Martinez earned nearly $590,000 in real estate broker commissions.
"The defendants took advantage of their knowledge and training in the mortgage industry to circumvent the rules and abused the positions of trust they held as real estate professionals and gatekeepers of FHA-insured loans in order to line their own pockets," said Mark Kaminsky, western region special agent-in-charge for the HUD Office of Inspector General.
Buditaslim, Tellez and Martinez face a maximum statutory penalty of 20 years in prison, along with fines and restitution. All three are scheduled to be sentenced on Oct. 30.
