This post has been updated.
Three people were arrested Friday in connection to a scheme around a foreclosed La Cañada Flintridge property, according to Los Angeles County Sheriff's officials.
Saliya “Sal” DeSilva, 49, of Northridge, Nora Yefima, 50, of Santa Clarita and Vahe Hayrapetian, 45, of Burbank allegedly coordinated the complex scheme that defrauded $1.5 million from Bank of America and Fidelity National Title Company.
Bank of America foreclosed on the Gould Avenue property after the previous owner failed to pay off $3.5 million in loans. DeSilva, posing as the owner, allegedly convinced Bank of America to rescind the foreclosure with the help of counterfeit documents.
Desilva then listed the property for sale in August 2011, according to sheriff's officials.
Hayrapetian, a loan broker, allegedly gave the new buyer a $1.5 million loan to buy the property. Hayrapetian is suspected of submitting fraudulent documents to a lender in order to secure the loan.
Yefima allegedly distributed $1 million of the loan to others.
The person who bought the home defaulted on loan, according to sheriff's officials, and the lender's insurance company may be required to reimburse the lender as a result of the fraud.
The Los Angeles County Sheriff’s Department Real Estate Fraud Team and Federal Bureau of Investigation conducted the investigation.
-- Tiffany Kelly, Times Community News