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California Man Sentenced to 10 Years in Prison for Multimillion Dollar Bank and Title Fraud Scheme
A California man has been sentenced to 10 years and one month in prison for his role in a fraudulent mortgage elimination scheme that swindled millions of dollars from homeowners.
George B. Larsen, 56, formerly of San Rafael, was convicted of conspiracy and bank fraud after a trial in December 2017.
According to court documents, Larsen was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
Larsen ran a branch of the mortgage elimination program, recruiting homeowners into the scheme and marshalling the necessary recorded documents. He guided the sale of the homes after the homeowners enrolled with Shon-te-East-a or Pillow Foundation, entities that claimed to offer protection against the banks.
The conspirators created sham deeds of trust, giving the impression that the homeowners had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowners owed no money to the purported new lender.
The scheme resulted in the sale of 37 properties and the recording of fraudulent documents on approximately 100 additional homes. The conspirators split the proceeds between themselves and the homeowners, with Larsen earning a significant share of the profits.
The case is the product of an investigation by the Federal Bureau of Investigation, with Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles prosecuting the case. One co-defendant, Larry Todt, was convicted at trial along with Larsen, while three other co-defendants have entered guilty pleas.
Larsen was also ordered to pay $1,759,100 in restitution for his role in the scheme. He is the latest defendant to be sentenced in the case, with several others awaiting trial or sentencing.
The charges against Larsen and his co-defendants are serious, with the potential for lengthy prison sentences and significant financial penalties. The case serves as a reminder of the importance of protecting homeowners from predatory schemes and the need for vigilance in the face of financial scams.
Key Facts
- State: California
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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