Mazen Alzoubi, a longtime Southern California real estate investor, has been sentenced to 75 months in federal prison for masterminding a brazen $3.6 million deed theft scheme that targeted post-foreclosure homes across San Diego County. U.S. District Judge Cynthia Bashant handed down the sentence on November 7, 2016, holding Alzoubi accountable for orchestrating a complex fraud ring that forged deeds, faked identities, and duped buyers into purchasing homes that never belonged to him.
From September 2012 until his arrest in November 2014, Alzoubi fraudulently sold or attempted to sell at least 15 properties, netting nearly $2.2 million in illicit gains. Using sham businesses like “Land Investments 01,” he forged deeds to make it appear that legitimate property owners had transferred title to his fake entities. Those forged documents were then recorded at county offices, embedding the fraud deep into the official chain of title and giving the scam a veneer of legality.
Alzoubi didn’t work alone. He deployed a network of aliases and shell companies, while his co-conspirators opened bank accounts to siphon off sale proceeds. He also forged notary stamps, mimicked real lawyers’ signatures, and filed fraudulent court filings. At one point, he even impersonated the attorney of a true homeowner—unaware he was speaking to an undercover federal agent. For these acts, he pleaded guilty in January 2016 to fraud, money laundering, and aggravated identity theft, the latter carrying a mandatory two-year sentence stacked onto his 75-month term.
Daniel Deaibes, who operated under the alias “John Moran,” pleaded guilty in March 2015 for his role in posing as a seller’s representative during multiple fraudulent transactions. He presented a fake driver’s license to notaries and signed off on phony paperwork. On October 24, 2016, Judge Bashant sentenced Deaibes to 24 months in prison. Another accomplice, Mohamed Daoud, admitted in July 2015 to laundering approximately $270,000 through his company “Norway LLC.” Daoud fled the country in December 2015 before sentencing and remains a fugitive.
The majority of the targeted properties were homes owned by financial institutions such as Fannie Mae and Freddie Mac—government-sponsored enterprises meant to stabilize the U.S. housing market. Alzoubi exploited the lag between foreclosure and resale, slipping in to hijack titles before banks could list the properties. Buyers who thought they were closing legitimate deals were left holding worthless contracts when the fraud unraveled.
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Andrew J. Galvin (619) 546-9721 prosecuted the case. The investigation exposed a chillingly efficient operation that weaponized bureaucracy, turning public records and legal formalities into tools of theft. Alzoubi’s conviction marks a significant win in the fight against organized real estate fraud—but with one co-conspirator still at large, the fallout from the scheme may not yet be over.
RELATED: Daniel Deaibes Sentenced in $3.6M Deed Theft Scheme
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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