Ayman Shahid, Bank Fraud, California 2023

OAKLAND – A federal grand jury has indicted Ayman Shahid, 38, of Danville, California, for allegedly masterminding a scheme to cause banks to approve mortgage loans for unqualified buyers at the height of the financial crisis.

According to the indictment, Shahid, who managed Discovery Sales, Inc., the sales arm of affiliated residential construction companies, including Discovery Home Builders and Albert D. Seeno Construction Co., devised and managed a scheme to provide undisclosed incentives to unqualified home buyers, allowing Discovery to continue selling houses during the financial crisis.

The indictment alleges that Shahid intentionally hid the scheme from appraisers and bank underwriters so that loans to unqualified buyers would be approved. The aggregate sales price of the homes affected by the scheme was almost $230 million, and loans with a value of $150 million went into foreclosure or short sale proceedings.

Shahid was arrested in Concord, California, this morning at approximately 8:45 a.m. and his initial appearance is scheduled for today at 11:30 a.m. in federal court before the Honorable Donna M. Ryu, United States Magistrate Court Judge in Oakland.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Shahid could face a maximum sentence of 30 years in prison, and a fine of $1,000,000, plus restitution if appropriate, for each of the 18 violations of 18 U.S.C. § 1344 alleged in the indictment.

This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force has made great strides in facilitating increased investigation and prosecution of financial crimes, enhancing coordination and cooperation among federal, state and local authorities, addressing discrimination in the lending and financial markets, and conducting outreach to the public, victims, financial institutions and other organizations.

Shahid’s case is being prosecuted by Assistant United States Attorneys John Hemann and Randy Luskey and was investigated by the FBI, IRS – Criminal Investigative Division, and Federal Housing Finance Agency, Office of Inspector General.

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