Legal News

"Straw buyer" indictment hits Southern District

By Richard Binder

An indictment unsealed Tuesday charges two dozen people, including a documented gang member, with racketeering offenses stemming from an extensive mortgage fraud scheme based in San Diego.

The defendants identified properties throughout Southern California that had been on the market for an extended period of time and for which the original asking price had been reduced. They then recruited "straw buyers," who allowed their names and credit histories to be used to obtain mortgage loans and purchase properties in name only on behalf of the racketeering enterprise, according to the indictment.

The indictment represents the largest mortgage fraud case ever prosecuted in the Southern District of California, involving 220 properties with a combined sales price of more than $100 million

U.S. Attorney Karen Hewitt alleges that Darnell Bell, a 38-year-old member of the Lincoln Park street gang, was the leader of the corrupt enterprise and personally received at least $9 million in proceeds from the racketeering conspiracy.

Full story here.

Full post as published by Legal Pad | LA on April 08, 2009 (boomark / email).