Monday, March 30, 2009

Washington State Mortgage Fraud Cabal Indicted

A Seattle, Washington grand jury returned a 40-count indictment last week against 7 individuals in the Seattle area charging them with participating in a $46 million mortgage fraud scheme. Those indicted include Vladislav Baydovskiy, 31 and Viktor Kobzar, 32, principlas of Kobay Financial Corp, Camie Byron, 32, an employee of Kobay, Alla Sobol, 28, principal of Nationwide Home Lending, David Sobol, 40, and Donata Baydovskiy, 28, principals of Emerald City Escrow ; and Sandra Thorpe, 55, a bookkeeper who allegedly prepared false letters verifying employment for buyers. They all reside in the Seattle, Washington area. The indictment, which includes charges of conspiracy, bank fraud, mail fraud and wire fraud, alleges the defendants used "straw buyers" or other unqualified buyers with "vastly overstated incomes" to artificially inflate home values and acquire more than $46 million in mortgages from ING Bank, Washington Mutual and other banks. The indictment also alleges they kept $9 million for themselves. They were all arrested last Thursday. ING had previously brought a federal racketeering suit against Nationwide and Emerald City. Prosecutors are calling this the largest mortgage fraud case in state history. Some of the money was used to perpetuate lavish lifestyles of some of the defendants.

Read the story here, here and here.

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