Modesto Man Sentenced to 30 Years for Mortgage Fraud Scam

FRESNO, Calif. — A 55-year-old Modesto man pleaded guilty to conspiring to commit bank fraud, the U.S. Attorney’s Office announced.

German Antonio Lopez-Velasquez, of Modesto, was found guilty of working with two other individuals to obtain fraudulent mortgage loans for properties across California. Lopez-Velasquez, a real estate agent, used false documents, fictional companies, and fictional individuals to secure mortgage loans for borrowers who were not qualified.

The scheme, which targeted borrowers in Stanislaus, San Joaquin, and Santa Clara Counties, among others, was part of a larger mortgage fraud scheme that involved multiple defendants.

Lopez-Velasquez’s co-conspirators, Lisa Santos, 48, of Long Beach, a mortgage loan officer, and Marko Antonio Lopez, 27, of Modesto, a real estate agent and notary public, have already pleaded guilty to similar charges.

Santos pleaded guilty on May 13, 2024, and is scheduled to be sentenced on September 30, 2024. Marko Antonio Lopez previously pleaded guilty and was sentenced on April 1, 2024.

Lopez-Velasquez is set to be sentenced on September 9, 2024, by U.S. District Judge Jennifer L. Thurston. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine.

The case was investigated by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG), and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.