38 Indicted in Mortgage Fraud Case
A federal grand jury in Santa Ana has charged 38 people with wire fraud, mail fraud, bank fraud and making false statements to the U.S. Department of Housing and Urban Development in connection with a series of mortgage scams.
According to the indictments, the defendants -- all of whom worked in the residential real estate business -- committed fraud by submitting forged documents to lending institutions for the purpose of obtaining real estate loans.
Among those charged, prosecutors said, are forgers who created documents -- including bogus pay stubs and W-2 forms -- and real estate professionals who allegedly ordered the documents for inclusion in home loan applications.
Defendants could face up to two years in federal prison for making false statements, five years for wire or mail fraud, or 30 years for bank fraud.
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