Mortgage Fraud Scheme Unravels in California
A trio of California residents has been sentenced to prison time for their roles in a $20 million mortgage fraud scheme. Dorothy Matsuba, 67, her daughter Jamie Matsuba, 33, and her husband Thomas Matsuba, 67, all of Chatsworth, California, were found guilty of various charges including conspiracy to commit wire fraud, false statements to a federally insured bank or mortgage lending business, and identity theft.
According to evidence presented at trial, from January 2005 to August 2014, the Matsubas engaged in a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, the conspirators rented out the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure.
The evidence further established that the conspirators obtained mortgages in the names of stolen identities. The defendants also used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties.
The defendants were sentenced by U.S. District Judge R. Gary Klausner of the Central District of California. Dorothy Matsuba was sentenced to 240 months in prison, Jamie Matsuba to 135 months, and Thomas Matsuba to 168 months. The defendants were also ordered to serve three years of supervised release. Restitution and forfeiture will be decided at a hearing on Aug. 13.
The case was investigated by the FBI, FHFA-OIG, IRS-CI, the U.S. Attorney’s Office for the Central District of California, the U.S. Trustee Program, Woodland Hills Field Office, Peter C. Anderson U.S. Trustee and the Los Angeles County Sheriff’s Department. Trial Attorney Niall M. O’Donnell, Senior Litigation Counsel David A. Bybee and Trial Attorney Jennifer L. Farer of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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