Former Pierce County hard money lender Emiel A. Kandi, 37, of University Place, Washington, was sentenced to five years in prison for orchestrating a mortgage fraud scheme that caused over $800,000 in losses.
Kandi pleaded guilty in April 2014 to conspiracy to submit false statements in loan applications and to make false statements to the Department of Housing and Urban Development (HUD). The judge, U.S. District Judge Ronald B. Leighton, called Kandi a ‘predator’ who exploited situations to secure funds.
Acting U.S. Attorney Annette L. Hayes emphasized that Kandi’s scheme not only defrauded HUD but also mortgage applicants. He was found to have hidden $35,000 in fraudulent charges directly into his bank accounts. The impact of mortgage fraud on homeowners and the economy was highlighted by Hayes.
Assistant Special Agent in Charge Carlos L. Mojica of the FBI’s Seattle field office commented that Kandi thought he could exploit members of the community and the federal government with his actions, but today he learned the true cost of criminal activity. The FBI is committed to holding individuals like Kandi accountable.
Records indicate that between 2008 and 2009, Kandi submitted false information to obtain home mortgage loans, including some designed to let him cash out properties he owned through hard money lending. He also included inflated appraisals in at least 19 loans to maximize the funds obtained.
Deborah Bortner, Director of Consumer Services at the Washington State Department of Financial Institutions (DFI), noted that changes were made to laws protecting consumers who secure loans with their primary residence due to cases like Kandi’s. The conviction sets a precedent for aggressively pursuing fraudulent behavior in mortgage and housing markets.
Related Federal Cases
- Emiel Kandi Pleads Guilty in $800K Mortgage Fraud Scheme · Washington
- $3B Recovered in Health Fraud Crackdown · Washington
- Banker Michael Thompson Sentenced for $5M Fraud · Washington
- Contractor John McClure Faces Decade-Long Prison Term in Fraud Scam · Washington
- McClure and Chambers Sentenced for $1.5M Contractor Fraud Scheme · Washington
Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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