Related Federal Cases
- Live Nation Faces Trial Over Monopoly Practices · Washington
- Amgen Pays $71M for Pushing Drugs Off-Label · Washington
- Amgen Inc. $71M Settlement · Washington
- Bribery Lands Columbia Man 8 Years in Prison · Florida
- Marijuana Kingpin Sentenced to 8 Years in Prison · Florida
Builder Bailout Scam Unraveled in OC
Federal authorities have arrested five people allegedly involved in a ‘builder bailout’ real estate scheme that fraudulently purchased more than 100 condominium units around the country with mortgages that mostly went into default.
The scheme, operated out of Excel Investments and related companies based in Irvine and then Santa Ana, identified new condominium developments in which the builder-owners were struggling to sell units and arranged with the builders to sell the units in return for large commissions.
The defendants recruited a number of straw buyers to purchase the properties as ‘investors,’ and ensured that they qualified for financing by fabricating important aspects of their loan applications.
The five defendants arrested yesterday are Aref Abaji, 31, of Aliso Viejo, a real estate agent; Maher Obagi, 26, of Huntington Beach, the brother of Aref Abaji; Jacqueline Burchell, 52, of Orange, an escrow agent; Mohamed Salah, 37, of Mission Viejo; and Mohamed El Tahir, 35, of Glen Burnie, Maryland.
A sixth defendant, mortgage loan officer Wajieh Tbakhi, 48, of Corona, is being sought by federal authorities. According to an indictment returned last Friday by a federal grand jury in Los Angeles, the defendants negotiated with the builders of new housing developments in California, Florida and Arizona to sell condominium units on behalf of builders in exchange for a hefty commission.
The indictment alleges that the defendants earned commissions of $50,000 to $100,000, and sometimes more, for each transaction. When many of the loans defaulted and led to foreclosure, the lending institutions suffered losses of at least $6.2 million.
The Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) purchased dozens of these loans on the secondary mortgage market and suffered losses of at least $2.37 million as a result of delinquencies, defaults and foreclosures on the properties.
The six defendants named in the indictment are all charged with conspiring to commit bank fraud and wire fraud. Abaji, Obagi, Tbakhi, and Burchell are additionally charged with six counts of wire fraud.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News