Four Bay Area men, including a loan officer from San Jose, have recently pleaded guilty in a significant scheme to obtain $55 million in home loans through fraudulent means. The Department of Justice revealed that these individuals utilized falsified incomes, divorce decrees, alimony checks, and bank statements to secure loans totaling $55 million. This elaborate scheme not only deceived financial institutions but also cost the Federal Housing Administration nearly half a million dollars to prevent insured loans from going into foreclosure.
The three main conspirators involved in this fraudulent activity have admitted to conspiring to originate 102 home loans based on false information. The consequences of their actions have had far-reaching effects, impacting both federal agencies and unsuspecting home buyers. As a result, these individuals will face sentencing before a federal judge in the coming months, with the fourth conspirator scheduled for a hearing in November.
U.S. Attorney for the Northern District of California, Ismail J. Ramsey, expressed his commitment to protecting all victims of fraud, emphasizing the need to hold these individuals accountable for their actions. He highlighted how the defendants exploited their professional knowledge of the mortgage industry to deceive unsuspecting home buyers, ultimately leading them into loans for which they were unqualified.
One of the key figures in this scheme, Jose Tellez, a 27-year-old loan officer from San Jose, pleaded guilty to conspiracy to commit wire fraud. Tellez admitted to facilitating over 30 loans totaling $17 million, knowing that the information provided was fraudulent. His cooperation with real estate professional Tjoman Buditaslim, 52 of Daly City, played a crucial role in the execution of this fraudulent scheme.
Buditaslim, who also pleaded guilty, confessed to originating loans between 2018 and 2022 based on falsified information. Additionally, licensed real estate agent Jose de Jesus Martinez, 59, admitted to referring clients to Buditaslim for loans, fully aware that fraudulent paperwork would be used to secure these loans. Martinez profited significantly from this scheme, earning over half a million dollars in real estate commissions while his clients received $27.7 million across 49 loans.
Mark Kaminsky, the western region special agent-in-charge with the U.S. Department of Housing and Urban Development Office of Inspector General, condemned the defendants for abusing their positions of trust within the mortgage industry. He emphasized how they manipulated the system to benefit themselves at the expense of unsuspecting individuals seeking home loans.
The fourth defendant, Travis Holasek, 51 of San Francisco, also pleaded guilty in connection to this fraudulent scheme. Facing charges of wire fraud and aggravated identity theft, these individuals were indicted by a grand jury in November 2023. Their actions have not only violated the law but have also eroded trust in the mortgage industry and financial institutions.
As the legal proceedings unfold, Buditaslim, Tellez, and Martinez are set to be sentenced on October 30, potentially facing a maximum penalty of 20 years in prison, hefty fines, and restitution. The consequences of their actions serve as a stark reminder of the importance of upholding integrity and honesty within the financial sector. The impact of their fraudulent activities extends beyond monetary losses, affecting the lives of those who were unknowingly caught up in this elaborate scheme.