A Credit Repair Specialist Fraudster pleaded guilty to false statements in loan and credit applications, mail fraud, and wire fraud.
The Fraudster worked with individuals throughout the Sacramento area to commit multiple Fraud acts in connection with his credit-repair business. He also created fraudulent identities for himself and his customers in order to use these identities to establish fraudulent lines of credit with banks and credit union, credit card companies, and car dealerships. In order to create these identities and their accompanying credit histories.
The Credit Repair Specialist “Fraudster” charged each client between $3,500 and $6,000 for his credit-repair service. In total, The Fraudster then established bogus credit histories for approximately 40 clients, some of which were then used to commit additional fraud.
The Fraudster used contacts within the finance industry to help in building fraudulent credit histories for the identities he developed. When the defendant or his customers applied for credit using these identities, the credit bureaus would report that the applicant was a good credit risk based upon the bogus histories that had been created by the “Credit Repair Fraudster”. In order to support the credit applications they submitted to obtain approval the loans, the Fraudster provided for him and his customers fraudulent paperwork, including bogus pay slips, W-2 forms. The Fraudulent documents came from nonexistent employers, and fake California driver’s licenses all of this information is per court documents, between 2006 and 2008.
The lines of credit obtained by the Fraudster and his customers allowed the purchase in 2006 of a $378,000 home in California, as well as multiple high-end luxury cars from Mercedes, BMW, Toyota, and Range Rover. In addition, The Fraudster obtained approximately $200,000 from many credit cards that he The Fraudster acquired in his own or fictitious names. The total loss from the activities, and the losses sustained as a result of the fraudulent credit applications submitted by the clients of his credit repair business were between $1.5 million and $2 million.
The Fraudster is scheduled to be sentenced by on April 23, 2010 and United States Attorney Benjamin B. Wagner made the announcement of this case. Others involved pleaded guilty to false statements in a credit application, unlawful use of a social security numbers, false statements in loan and credit applications.
We should all thank the United States Secret Service and the Placer County Sheriff’s Department for the results of this investigation.
Remember, fraud often starts small; We must be vigilant against fraud, recognizing its signs and taking proactive, definite, and realistic steps to not only prevent it but also punish it.
It starts with me.
It starts with you.
It starts with us…
Michael S. Richardson
Director/Mortgage Fraud Services
Author of “An American Epidemic, Mortgage Fraud a Serious Business”