Six Charged in Mortgage
Fraud Scheme
United States Attorney Karen P. Hewitt
announced today the unsealing of a felony complaint
in federal court in San Diego charging six individuals
with wire fraud. The complaint alleges that Rafael
Santiago, Abner Betech, Said Betech, Aviva Betech,
Angel Armendariz, and Lucette Montane devised a plan
to defraud and to obtain money and property by false
and fraudulent means, related to mortgage fraud. This
case is part of a Department of Justice and Federal
Bureau of Investigation nationwide operation entitled “Malicious
Mortgage” to identify, arrest, and prosecute
mortgage fraud violations throughout the United States.
According to the complaint, in 2005,
Abner Betech, Said Betech, and others started Creative
Financial Solutions,
Inc. (CFS), a mortgage brokering company
located at 707 Broadway Avenue, Suite 1720, San Diego.
CFS was in the business of sending loan application
packages and other documents to lenders for review
and funding. The complaint alleges that CFS did not
fund loans, but instead received commissions
from the lenders when the loans closed. The defendants
were loan officers at CFS and in addition to the
commissions, they received payments from lenders,
sellers, and buyers
when loans closed.
The complaint further alleges that CFS
obtained mortgage loans for unqualified or unknowing
borrowers by, among other things, concealing the true
purchase price of the homes by submitting false purchase
contracts; submitting false loan applications; intentionally
concealing the fair market value of the home; using
misleading appraisals; and submitting false bank statements
and income documentation. In total, the lenders have
lost nearly $3.9 million, with potential losses in
excess of $5.1 million, due to foreclosures.
“Mortgage
fraud and related securities fraud pose a significant
threat to our economy, to the stability of our nation’s
housing market and to the peace of mind of millions
of American homeowners,” said Deputy Attorney
General Mark R. Filip. “Operation Malicious Mortgage
and our other mortgage-related enforcement actions
demonstrate the Justice Department’s commitment
and determination to combat these criminal schemes,
hold their perpetrators accountable and help restore
stability and confidence in our housing and credit
markets.”
“Operation Malicious Mortgage is
a concerted, joint law enforcement and prosecutorial
effort aimed at disrupting individuals and groups engaged
in mortgage fraud,” said FBI Director Robert
S. Mueller, III. “This operation is an example
of our unified commitment to address this significant
crime problem. The FBI will continue to direct investigative
and analytic resources towards mortgage fraud and corporate
securities fraud that threaten our nation’s economy.”
Abner
Betech, Said Betech, and Aviva Betech were arraigned
on the complaint on June 17, 2008. Rafael Santiago,
Angel Armendariz, and Lucette Montane remain at large.
This case is the product of an investigation
by the Federal Bureau of Investigation and Internal
Revenue
Service, Criminal Investigation Division.
DEFENDANTS Magistrate
Case No. 08 MJ 1855
Rafael Santiago
Abner Betech
Said Betech
Aviva
Betech
Angel Armendariz
Lucette Montane
SUMMARY OF CHARGES
Title 18, United States
Code, Section 1343 (Wire Fraud); Title 18, United States
Code, Section 2 (Aiding and Abetting)
Maximum Penalties:
20 years incarceration, a fine of $250,000, three years
of supervised release
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service - Criminal Investigation
A
complaint itself is not evidence that the defendants
committed the crimes charged. The defendants are
presumed innocent until the Government meets its burden
in court
of proving guilt beyond a reasonable doubt.
