Local broker charged with fraud
June 24, 2008
By Emily Keller
A Sammamish man is one of six local people indicted in a Federal mortgage fraud investigation.
The U.S. Attorney’s Office alleges Mustafa “Marc” Khosraw, a 46-year-old mortgage broker, worked with a Seattle loan officer to create and submit false documents as part of an $8.5 million scheme to profit from fake mortgages. Khosraw could not be reached for comment.
The other defendants are from Bellevue, Tacoma and North Bend according to a press release from the United States Attorney’s Office for the Western District of Washington.
The six defendants were indicted by a Federal grand jury in Seattle June 18 for conspiracy and wire fraud charges from 2004 and 2005. Wire fraud carries charges of up to a $250,000 penalty and 20 years in prison.
Federal investigators allege the defendants sold houses to shell companies or third parties, sometimes using “straw buyers” who agreed to buy the homes at specified prices.
Shell companies included SFN, LLC, and Sterling Investment, according to the press release.
According to the press release, the defendants then created fake appraisals, deposit forms, employment verifications and closing documents and profited from the fake mortgages.
The buyers defaulted on their loans after making up to $20,000 each, and the houses went into foreclosure, causing significant losses for financial institutions and mortgage lenders.
The indictment is part of Operation Malicious Mortgage, a federal investigation that took place between March 1 and June 18 and uncovered 144 mortgage fraud cases with 406 defendants nationwide.
The FBI, the King County Prosecuting Attorney’s Office and the Washington State Department of Financial Institutions investigated the local case.
Reporter Emily Keller can be reached at 392-6434, ext. 242, or ekeller@isspress.com.
Comments
Got something to say?
Before you comment, please note:
- These comments are moderated.
- Comments should be relevant to the topic at hand and contribute to its discussion.
- Personal attacks and/or excessive profanity will not be tolerated and such comments will not be approved.
- This is not your personal chat room or forum, so please stay on topic.
