Aleksandr Kovalev, Mortgage Fraud, California 2017

A rocklin man, Aleksandr Kovalev, 53, has pleaded guilty to a large-scale mortgage fraud scheme that involved the purchase of at least 31 properties in Sacramento, Fairfield and Stockton. He faces up to 30 years in prison and a fine of $1 million.

According to court documents, Kovalev was in the business of developing, building and selling property. As the real estate market began to weaken, he offered to make incentive payments to purchasers through 'down payment assistance' or by making other payments to the buyers. These payments were not disclosed to the lenders and had the effect of substantially reducing the actual sales price below that was represented to the lenders.

Kovalev's scheme resulted in substantial losses to the lenders, with at least 31 properties involved. This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.

Five co-defendants have already pleaded guilty and been sentenced: Jannice Riddick, 34, of Sacramento (two years and 11 months in prison); Florence Francisco, 65, of Houston, Texas (one year in prison); Adil Qayyum, 34, of Rosele, Illinois (three years of probation); Elsie Pamela Fuller, 41, of Richmond (one year and nine months in prison); and Leona Yeargin, 49, of San Pablo (18 months in prison). Charges are pending against co-defendant Arthur Menefee, 45, of Stockton.

Two other defendants were charged separately for their involvement in the scheme. Valeriy Vasilevitsky and Ruth Willis have also pleaded guilty and await sentencing.

Kovalev is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on February 9, 2017. The maximum statutory penalty he faces is 30 years in prison and a fine of $1 million or twice the gross loss or gain. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.

Source: https://www.justice.gov/usao-edca/pr/rocklin-man-pleads-guilty-large-scale-mortgage-fraud-scheme