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ilbegone 10-31-2009 07:08 AM

Plea deal details fraud scheme
 
Plea deal details fraud scheme

The Bakersfield Californian
Sep 29 2009

Quote:

United States of America, plaintiff, v. Jerald Allen Teixeira, defendant

From the Memorandum of Plea Agreement Pursuant to Rule 11(c) of the Federal Rules of Criminal Procedure

Factual basis

The defendant will plead guilty because he is in fact guilty of the crimes set forth in the information. The defendant also agrees that the following are the facts of this case, although he acknowledges that, as to other facts, the parties may disagree:

Beginning at a time unknown, but no later than October 2004, to in or about January 2007, in the State and Eastern District of California, the defendant, along with David Crisp, Carl Cole, and others executed a scheme and artifice to defraud mortgage loan companies and federally insured lending/financial institutions (collectively referred to herein as “Lenders”) of money and property, and did obtain money and property from such Lenders, including but not limited to SunTrust Mortgage, Pulte Mortgage, and GMAC, by means of materially false and fraudulent pretenses, representations and promises. David Crisp and Carl Cole owned and operated Crisp & Cole Real Estate (“CCRE”), a real estate brokerage firm, and Tower Lending, an affiliated mortgage brokerage that shared office space with CCRE.

From October 2005 to January 2007, the defendant was employed by Tower Lending as a loan officer. During his tenure at Tower Lending, the defendant obtained and processed at least sixty (60) mortgage loans from Lenders for buyers of real property represented by CCRE. The Lenders’ loan funds were used to finance purchases of the real properties.

On many of the loans processed by defendant at Tower Lending, the defendant knowinglyparticipated in and facilitated the use of materially false and fraudulent statements in loan applications and related transaction documents, including false and fraudulent statements by the borrowers and/or by CCRE or Tower Lending employees to obtain the loans from the Lenders. The false and fraudulent statements in the loan applications and other materials frequently included material misstatements of the borrowers’ income, employment status, and/or occupation, and false statements concerning the borrowers’ intent to reside in the properties as owner-occupiers among other material misstatements and/or omissions. For example, the defendant would at times falsely inflate a borrower’s income on the loan application and related documents, if it appeared that the borrower would not qualify for a particular loan based on the borrower’s actual income. The defendant knowingly processed these false and fraudulent loan applications, and would cause them to be submitted to Lenders, resulting in the Lenders funding mortgage loans on the basis of such materially false and misleading information. The Lenders then distributed the mortgage loan funds to escrow companies or other companies, often across state lines. The defendant performed these tasks, including without limitation the false overstatement of borrowers’ incomes, mainly at the direction and request of David Crisp, Carl Cole, Julie Farmer (CCRE’s office manager) and Sneha Mohammadi (Tower Lending’s office manager and CCRE’s chief financial officer).

During the period from October 2004 to December 2006, the defendant purchased approximately eleven (11) real properties with a total purchase value at the time of approximately $4.4 million and obtained loans to finance such purchases, and also refinanced the mortgage on one of these real properties. In order to qualify for these loans, in almost all of these loan applications he submitted to the Lenders, the defendant knowingly made material misstatements and/or omitted relevant and material information. Based on his experience in the industry, the defendant knew and expected that the Lenders would reasonably rely on such misstatements and omissions in approving the funding of the mortgage loans for defendant’s purchases of real property. The defendant’s misstatements and omissions included, but are not limited to: misstatements concerning his income and his outstanding liabilities (including his liabilities with respect to other real property), and misstatements that he would use certain properties as owner-occupied residences when in fact he had no intent to reside in the properties.

The defendant and others at CCRE and Tower Lending knew that the misstatements and/or omissions that the defendant and others caused to be submitted to the Lenders in connection with mortgage loan applications were materially false and fraudulent. The mortgage loans funded on the basis of such applications were knowingly obtained through materially false and fraudulent statements.

Specifically, in or around July 2006, the defendant submitted a loan application to SunTrust Mortgage to refinance the real property located at 627 A St., Taft, California. In the refinance application, the defendant knowingly, and with the intent to defraud, failed to list the total outstanding obligations he had on other real estate properties he then owned. As a result of the material false and fraudulent information the defendant provided to SunTrust Mortgage, SunTrust Mortgage disbursed approximately $170,250 in funds for the refinancing.

In furtherance of the scheme and artifice to defraud, and to obtain monies through the false and fraudulent pretenses and to aid and abet the same, on or about August 29, 2006, the defendant caused to be transmitted by means of wire in interstate commerce, a wire sign and signal from Georgia to Bakersfield, California, in the State and Eastern District California, specifically: a wire transfer of $168,796.38 from SunTrust Mortgage, located in Georgia, to Ticor Title Company in Bakersfield, California, on account of the refinance application submitted by the defendant for 627 A St., Taft, California. This property was eventually foreclosed upon in October 2007 after the defendant failed to make the loan payments when due.

At all relevant times herein, in carrying out these actions, the defendant acted with the intent to defraud. The defendant’s criminal conduct involved 10 or more Lender victims. In total, the defendant defrauded Lenders of approximately $1,078,389.


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