Monday, May 7, 2012

Cash-Out Refinance Ripoffs Among Bad Acts Leading To Conviction OF N.Virginia Real Estate Operator; Overall Scheme Involved Over Two Dozen Homes

From the Office of the U.S. Attorney (Norfolk, Virginia):

  • Nadin Samnang, 29, of Ashburn, Va., has been convicted by a federal jury for his role in fraudulent mortgage loan transactions involving at least 25 homes in northern Virginia and more than $7 million in losses to lenders. Samnang is a District of Columbia real estate developer and was formerly a realtor with Monorom Realty and Fairfax Realty in Virginia.
  • According to court records and evidence at trial, from 2006 to 2008, Samnang used his position as a realtor and the owner of a title company to engage in a scheme to defraud mortgage lenders and profit from loan proceeds, commissions, and bonus payments. Samnang and other members of the conspiracy recruited unqualified buyers — usually individuals with good credit but insufficient assets or income to qualify for a particular loan — and used them as nominal purchasers in residential real estate transactions.

  • As part of the conspiracy and fraud scheme, Samnang and others falsified mortgage loan applications, created fake documents to support the fraudulent applications, and added the unqualified buyers as signatories on their bank accounts to make it appear to lenders as though the buyers possessed sufficient assets to qualify for the loans.
  • [As part of the scheme,] Samnang would [] profit by arranging for cash-out refinances to be done for these borrowers, retaining most of the loan proceeds for himself, and paying kickbacks to the loan officer who had processed the fraudulent loans.
For the U.S. Attorney press release, see Ashburn Realtor Convicted In $7 Million Mortgage Fraud Scheme.

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