Related Federal Cases
- Daniel Deaibes, Wire Fraud and Aggravated Identity Theft, California 2012 · Florida
- Ronald Charles Reed, Bank Fraud and Aggravated Identity Theft, California 2024 · North Carolina
- Michelle Lefaoe, Mortgage Loan Modification Fraud, California 2019 · Washington
- Derrick Courtney Franklin II, Wire Fraud and Aggravated Identity Theft, Idaho 2016 · Colorado
- Elizabeth Holmes, Wire Fraud and Conspiracy to Commit Wire Fraud, California 2022 · California
Rachel Siders, a 41-year-old resident of Roseville, California, has been sentenced to 14.5 years in prison for her involvement in mortgage fraud schemes that cost financial institutions over $17 million.
On March 2015 and December 2015, federal juries returned verdicts in two trials, finding Siders guilty of multiple counts of bank fraud, wire fraud, mail fraud, making a false loan application, and committing aggravated identity theft.
According to evidence presented at the first trial, in 2008 Siders and co-defendant Theo Adams applied for a home equity line of credit using Adams’ relative’s name on an underwater Roseville property owned by Adams. They submitted false tax returns in the relative’s name with significantly inflated income along with mortgage application documents with forged signatures. Siders, a notary public, falsely notarized the loan application documents, which were sent to Washington Mutual Bank. The bank relied upon the false documents to provide a $250,000 line of credit. Siders received $170,000 of the proceeds. After making minimal payments, the defendants defaulted on the loan.
According to evidence presented at the second trial, from mid-2006 through early 2008, Siders and Vera Kuzmenko, 46, of Loomis, and other defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. They secured more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. Records introduced at trial showed that Vera Kuzmenko received millions of dollars, and that Rachel Siders received hundreds of thousands of dollars.
Vera Kuzmenko, a licensed real estate agent for part of the scheme, and Rachel Siders, who ran the Rocklin office of the escrow company used on the majority of the transactions, helped funnel millions of dollars to their co-defendants, which was not disclosed to the lenders.
“The sentence today reflects the seriousness of Siders’ crimes, which included participation in two separate mortgage fraud schemes. Over the course of two years, Siders oversaw and participated in numerous fraudulent loans and diverted money into shell accounts for her own benefit. She abused her position as an escrow officer and as a notary public to make this criminal enterprise succeed,” said Acting U.S. Attorney Phillip A. Talbert. “The sentence imposed is a significant reminder that those who engage in such conduct will be held accountable.”
Rachel Siders is a 41-year-old resident of Roseville, California. The exact criminal charges against Siders are bank fraud, wire fraud, mail fraud, making a false loan application, and committing aggravated identity theft. The crime dates back to 2006-2008. The sentencing occurred on an unspecified date in 2016. Rachel Siders was sentenced to 14.5 years in prison. The schemes cost financial institutions over $17 million.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News