Elk Grove Man Pleas Guity to Mortgage Fraud
United States Attorney Benjamin B. Wagner announced that Nicole Dawson, 41, of Oakland, and Ronald Burris, Jr., 38, of Elk Grove, pleaded gu...
https://www.elkgrovenews.net/2011/09/elk-grove-man-pleas-guity-to-mortgage.html
United States Attorney Benjamin B. Wagner announced that Nicole Dawson, 41, of Oakland, and Ronald Burris, Jr., 38, of Elk Grove, pleaded guilty today to conspiring to commit mail fraud and making false statements in a loan application.
Dawson and Burris were charged in June 2010 along with eight other defendants in a conspiracy that centered around Liberty Real Estate and Investment Company and Liberty Mortgage Company, two companies owned by co-defendant Hoda Samuel. The companies were instrumental in the purchase of at least 30 homes in the Sacramento area in 2006 and 2007.
The purchases were typically accomplished through 100 percent financing, obtained as the result of false information regarding the buyers’ employment, income, and intent to live in the properties. At the close of the transactions, and unbeknownst to the lenders, cash payments were made back to the buyers out of the loan proceeds. Of the 30 transactions, at least 28 have gone into foreclosure, resulting in a loss to lenders in excess of $5 million.
According to his guilty plea, Burris admitted purchasing three homes in a two-month period, submitting false loan applications to finance the purchases, and receiving approximately $75,000 at the close of these transactions. According to her plea, Dawson admitted purchasing two homes over a two-month period, submitting false loan applications, and receiving approximately $64,000 at the close of the transactions.
The defendants are scheduled to sentenced by United States District Judge John A. Mendez on November 15, 2011. They face a maximum statutory penalty of five years in prison.
Dawson and Burris were charged in June 2010 along with eight other defendants in a conspiracy that centered around Liberty Real Estate and Investment Company and Liberty Mortgage Company, two companies owned by co-defendant Hoda Samuel. The companies were instrumental in the purchase of at least 30 homes in the Sacramento area in 2006 and 2007.
The purchases were typically accomplished through 100 percent financing, obtained as the result of false information regarding the buyers’ employment, income, and intent to live in the properties. At the close of the transactions, and unbeknownst to the lenders, cash payments were made back to the buyers out of the loan proceeds. Of the 30 transactions, at least 28 have gone into foreclosure, resulting in a loss to lenders in excess of $5 million.
According to his guilty plea, Burris admitted purchasing three homes in a two-month period, submitting false loan applications to finance the purchases, and receiving approximately $75,000 at the close of these transactions. According to her plea, Dawson admitted purchasing two homes over a two-month period, submitting false loan applications, and receiving approximately $64,000 at the close of the transactions.
The defendants are scheduled to sentenced by United States District Judge John A. Mendez on November 15, 2011. They face a maximum statutory penalty of five years in prison.
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