Daniel Deaibes was sentenced today to 24 months in federal prison for his role in a brazen, multi-million dollar real estate deed theft scheme that targeted Southern California homes. From September 2012 through November 2014, Deaibes and co-conspirators Mazen Alzoubi and Mohamed Daoud fraudulently sold or attempted to sell at least 15 properties worth more than $3.6 million—none of which they legally owned. On ten occasions, they succeeded, pocketing nearly $2.2 million in illicit proceeds before being caught.
Deaibes pleaded guilty in March 2015 to conspiracy to commit wire fraud and aggravated identity theft. He admitted to using the alias “John Moran”—backed by a fake driver’s license—to pose as the legitimate owner of properties he never had title to. He appeared before notaries three times, signing fraudulent deeds while pretending to be “Moran,” a man who did not exist. The forged documents were then recorded in county records, creating a false paper trail that made the scams appear legitimate to buyers and title companies.
The scheme relied on forged deeds and fake notary stamps to fabricate sales from real homeowners to shell companies controlled by the conspirators. In reality, the true owners had no knowledge their homes were supposedly sold. Alzoubi, the ringleader, used multiple aliases and even impersonated an attorney representing a homeowner—unaware he was speaking to an undercover federal agent. His greater role in the operation led to a guilty plea in January 2016 on charges including aggravated identity theft, which carries a mandatory two-year sentence on top of his fraud and money laundering convictions.
Mohamed Daoud, another key player, pleaded guilty in July 2015 to money laundering charges. He admitted to funneling the fraud’s proceeds through his company, “Norway LLC,” which falsely claimed ownership of several targeted properties. Daoud received approximately $270,000 from the scam. But in December 2015—before he could be sentenced—he fled the United States and remains a fugitive.
Most of the targeted homes were post-foreclosure properties owned by banks or government-backed entities Fannie Mae and Freddie Mac. These institutions, created to stabilize the U.S. housing market, often hold title to homes after foreclosure. The fraud exploited gaps in title verification, allowing the conspirators to hijack the sales process, collect buyer payments, and vanish before the ruse collapsed.
“Schemes like this one undermine the public’s confidence in their most personal and important investment, their homes,” said U.S. Attorney officials. Alzoubi is scheduled for sentencing on November 7, 2016, at 9:00 a.m. before U.S. District Judge Cynthia Bashant. The case was investigated by federal and local authorities working under the Department of Justice’s Fraud Section and the U.S. Attorney’s Office for the Southern District of California.
Related Federal Cases
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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