Kathy Chen (KTLA-TV) |
SANTA ANA -- An Orange County real estate broker and two others are accused in a mortgage fraud scheme that investigators say netted them nearly $18 million.
Kathy Chen, 48, of Westminster, her former boyfriend, Richard Salgado Gonzalez, 59, and his brother Daniel Gonzalez, 56, were charged Monday with 154 felony counts, including conspiracy, forgery, recording false documents, identity theft, and elder financial exploitation.
Chen was arrested Monday and was being held on a $3 million warrant. Arrest warrants have been issued for the two brothers, who are thought to be in Puerto Vallarta, Mexico.
Prosecutors say the trio used "straw buyers," stolen identities and fake income documents to buy 13 homes in Orange County, 16 in San Bernardino and six in Kern County, ultimately obtaining $17.5 million in loans.
They allegedly fabricated loan applications to reflect higher incomes for the "straw buyers" and forged the names and signatures on various deeds and loan documents, according to a statement released by the Orange County District Attorney's Office.
A "straw buyer" is a person who allows their credit to be used to purchase a property they never intend to use or control. Straw buyers can also be used to purchase non-owner occupied properties by being paid simply for the use of their credit.
The defendants are accused of using the personal and credit information of some of the straw buyers on several occasions without their knowledge or consent, prosecutors said, adding that the straw buyers had only agreed to the purchase of one home.
Among the victims, prosecutors say, was an 89-year-old woman.
The defendants also allegedly acted as an escrow company and made some monthly payments on the loans to prevent suspicion by the lender before they defaulted on loans in hopes of keeping the excess loan money, according to prosecutors.
While others were losing their homes, the three defendants were "taking advantage of the system and making it harder on everyone else to get loans," said Farrah Emami of the Orange County District Attorney's Office.
If convicted, the defendants face sentences ranging from two years up to 109 years in state prison.
Kathy Chen, 48, of Westminster, her former boyfriend, Richard Salgado Gonzalez, 59, and his brother Daniel Gonzalez, 56, were charged Monday with 154 felony counts, including conspiracy, forgery, recording false documents, identity theft, and elder financial exploitation.
Chen was arrested Monday and was being held on a $3 million warrant. Arrest warrants have been issued for the two brothers, who are thought to be in Puerto Vallarta, Mexico.
Prosecutors say the trio used "straw buyers," stolen identities and fake income documents to buy 13 homes in Orange County, 16 in San Bernardino and six in Kern County, ultimately obtaining $17.5 million in loans.
They allegedly fabricated loan applications to reflect higher incomes for the "straw buyers" and forged the names and signatures on various deeds and loan documents, according to a statement released by the Orange County District Attorney's Office.
A "straw buyer" is a person who allows their credit to be used to purchase a property they never intend to use or control. Straw buyers can also be used to purchase non-owner occupied properties by being paid simply for the use of their credit.
The defendants are accused of using the personal and credit information of some of the straw buyers on several occasions without their knowledge or consent, prosecutors said, adding that the straw buyers had only agreed to the purchase of one home.
Among the victims, prosecutors say, was an 89-year-old woman.
The defendants also allegedly acted as an escrow company and made some monthly payments on the loans to prevent suspicion by the lender before they defaulted on loans in hopes of keeping the excess loan money, according to prosecutors.
While others were losing their homes, the three defendants were "taking advantage of the system and making it harder on everyone else to get loans," said Farrah Emami of the Orange County District Attorney's Office.
If convicted, the defendants face sentences ranging from two years up to 109 years in state prison.
