A shocking case of bank fraud has come to light in California, with a former FBI employee and his wife pleading guilty to defrauding two major banks.
Charles and Jeannette Espinel, both 61 and 58 years old respectively, admitted to defrauding First California Bank and Wells Fargo Bank in connection with mortgage loans they obtained to purchase two rental properties in Daly City and San Bruno, California.
The Espinels submitted fraudulent mortgage loan applications in 2006 and 2007, overstating their incomes and claiming it was their intention to occupy the rental properties as their primary residence, when in fact they intended to rent them out.
In 2007, 2008, 2009, and 2010, Charles Espinel knowingly submitted false security financial disclosure forms (SFDFs) to the Federal Bureau of Investigation (FBI) Security Division/Internal Security Section, failing to disclose his wife’s income and the real estate properties he owned or the rental income he was receiving from those properties.
The Espinels admitted that the total loss from their bank fraud was over $83,000.
Charles Espinel, a 32-year veteran of the FBI, worked as a Support Services Technician in the San Francisco Division from May 1979 until February 2012, with Top Secret clearance and access to sensitive information.
The Espinels were charged with one count of Bank Fraud in a Criminal Information on June 3, 2014.
The maximum statutory penalty for Bank Fraud is 30 years imprisonment and $1,000,000 fine.
The Espinels’ sentencing is scheduled for November 12, 2014, before the Honorable Charles R. Breyer, United States District Court Judge, in San Francisco.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen.
The prosecution is the result of an investigation by the United States Office of the Inspector General.
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Key Facts
- State: California
- Category: Banking and Finance|White Collar Crime
- Source: DOJ Press Release â†â€â€
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