Five people have been indicted in a mortgage fraud scheme that includes houses in South Lake Tahoe – one on Herbert Avenue, two on Pioneer Trail and one on Inverness Drive.
One house in Nevada City is caught up in the cash-back-to-buyer mortgage fraud scheme that local FBI agents helped bring to light.
The eight-count indictment contends that various lending institutions lost more than $1 million in the process. Washington Mutual doing business as Long Beach Mortgage, Countrywide Bank, FSB and other lenders were used by the suspects.
The banks relied on false statements supplied by the suspects to fund the transactions, according to the February indictment.
The 22-page indictment signed by Larry Brown, acting U.S. attorney in Sacramento, outlines a complex web of transactions that occurred from June 2005 to April 2007.
The various charges include conspiracy to commit bank fraud and mail fraud, making false statement on a loan applications, money laundering. If convicted, sentences could range from five to 30 years in federal prison.
The five accused are Dennis Aaron Moore, 50, of Hillsborough, Veronika Wright, 33, of San Ramon, Mitchell Wright, 36, of San Ramon, Haiying Fan, 42, of Millbrae, and Gary Lorenzo George, 50, of Olivehurst. They were arraigned in the U.S. Eastern District Court on Feb. 20. Fan was release on bond and the others were trying to do the same as of press time.
The impact on the local homeowners is not known.