Broker out on bond
August 6, 2008
By Emily Keller
Sammamish resident Mustafa “Marc” Khosraw could face up to 30 years in jail for participation in what the U.S. Attorney’s Office calls a mortgage fraud scheme – one that has gained national attention.
Khosraw, 46, is one of 406 people indicted in Operation “Malicious Mortgage,” a federal investigation that uncovered 144 mortgage fraud cases between March 1 and June 18.
The U.S. Attorney’s Office alleges that Khosraw, a mortgage broker, drafted false mortgage documents as part of a six-person team in the Puget Sound area that made $8.5 million in profits in 2004 and 2005.
The defendants, who are also from Bellevue, Tacoma and North Bend, were indicted by a federal grand jury in Seattle June 18 for conspiracy and wire fraud charges, according to a press release from the U. S. Attorney’s Office for the Western District of Washington.
Assistant U. S. Attorney Vince Lombardi, a prosecutor for the case, said Khosraw has been accused of one count of conspiracy to commit wire fraud and several counts of committing wire fraud.
Lombardi said Khosraw was released from jail soon after his arrest and is prohibited from traveling or contacting witnesses. Khosraw is also required to report to a pretrial service officer regularly.
Lombardi said Khosraw worked as a mortgage broker and real estate sales agent who sought out property, used fraudulent information to draft mortgages, recruited straw buyers who defaulted on their mortgages and collected commission as a sales agent and loan broker.
“We believe the evidence will show he was also getting kickbacks from other members of the conspiracy,” Lombardi said.
The U.S. Attorney’s Office says the defendants created fake appraisals, deposit forms, employment verifications and closing documents, making up to $20,000 on each home before defaulting on their loans.
The houses then went into foreclosure at the expense of financial institutions and mortgage lenders, according to the indictment.
Lombardi said the case will likely go to trial next spring. “As you can imagine with a case like this, there’s a lot of documents,” he said.
Lombardi is unsure whether Khosraw currently resides in Sammamish.
Khosraw could not be located for comment.
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.
