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Foreclosure Fraud Netting Nearly $20 Million Leads to Jail Time for 3 Company Managers

Foreclosure FraudThe three owners and managers of Los Angeles area foreclosure rescue companies will serve time in jail after a scheme that cost millions in fraudulent foreclosures. The elaborate fraud preyed upon distressed homeowners.

Foreclosure Fraud

According to the Department of Justice, Dorothy Matsuba, Jamie Matsuba, Thomas Matsuba and others committed fraud from 2007 to 2014. They would convince homeowners they could avoid foreclosure through a short sale. However, the Matsuba’s would then rent out the properties to third parties. They did not pay the mortgages on the properties, and falsified documents to mortgage lenders to delay foreclosure.

But the scheme didn’t stop there. They also got mortgages via stolen identities, filed false bankruptcies and faked liens on the distressed properties.

The Fallout

Dorothy Matsuba was sentenced to 240 months in prison. She pleaded guilty to one count conspiracy to commit wire fraud, false statements to a federally insured bank or mortgage lending business, and identity theft, five counts of wire fraud, six counts of false statements to federally insured banks, and six counts of aggravated identity theft.

Jamie Matsuba was sentenced to 135 months and Thomas Matsuba to 168 months. Both were convicted of one count of conspiracy to commit wire fraud, making false statements to federally insured banks, and committing identity theft.

Other Charges

Two other defendants have been charged in connection with this foreclosure fraud. Jane Matsuba-Garcia has previously pleaded guilty and is awaiting sentencing. Young Park is wanted in this case but is currently a fugitive.

Other Victims

Because of the wide-reaching nature of this case, there may be more victims of this foreclosure scheme. If you think you have information that could help authorities visit the DOJ’s Fraud Section and see the Fraud Victim website.

To learn more about this case or report suspected fraud, contact Jeffrey Newman Law today!

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