Two Mortgage Fraud Cases Charged Yesterday

May 10, 2010

by California RealEstateRama

Five Defendants Legally Changed Their Names to Conceal Scheme
Roseville Man Made False Statements to Financial Institutions

SACRAMENTO, CA – May 10, 2010 – (RealEstateRama) — United States Attorney Benjamin B. Wagner announced today that a federal grand jury returned an indictment charging Jake Weathers, 34, Elk Grove, Glenn Watkins, 40, Elk Grove, Kevin Watkins, 25, Elk Grove, Frederick Davis, 40, Elk Grove, and Paul Yearby Jr., 29, of Fair Oaks, with 11 counts of mail fraud relating to their alleged operation of a mortgage fraud scheme that involved the defendants changing their names to Muslim names in order to obtain new credit and to conceal poor credit histories and other liabilities in their birth names.

The indictment alleges that Glenn Watkins legally changed his name to “Rasheed Khaleb” to fraudulently purchase two homes. Once those homes fell into foreclosure, he legally changed his name to “Jason Johnson.” Likewise, the indictment alleges that Kevin Watkins changed his name to “Jamal Ali” then to “Calvin Carter.” Their uncle, Frederick Davis, allegedly changed his name to “Ammar Rashad,” to purchase a home, then to “Corey Green” once that home fell into foreclosure. Paul Yearby Jr. legally changed his name to “Malcom Ali” in order to execute the fraud scheme. Assistant United States Attorney Russell L. Carlberg is prosecuting the case

According to the indictment, Jake Weathers, an unlicensed mortgage broker operating as “Weathers & Associates,” devised the scheme to defraud in order to obtain loan brokerage commissions and other cash payments from sellers made outside of escrow (i.e., they were not disclosed to the title company or to lenders). Weathers also is charged with knowingly providing to lenders false documents such as W-2 tax forms, wage earning statements, bank statements, and other documents, to support loan applications that stated borrowers earned significant income through employment with a company owned by WEATHERS, “C Auto Brokers.” Losses are estimated at over $1 million.

In a separate case, the grand jury returned a four-count indictment charging Nathaniel Blanton, 27, of Roseville, with making false statements to financial institutions in connection with four mortgage loan applications on two residential properties in Roseville and Lincoln. The indictment alleges that Blanton submitted loan applications that falsely inflated his income and cash assets by tens of thousands of dollars. The Blanton case is also being prosecuted by Assistant U.S. Attorney Carlberg.

These cases are the product of an extensive investigations by the Federal Bureau of Investigation and the IRS-Criminal Investigation. The investigations are ongoing.

In the Weathers case, the maximum statutory penalty for each count of conspiracy to commit mail fraud and mail fraud is 20 years in prison, a $250,000 fine, and three years of supervised release. In the Blanton case, the maximum penalty for each false statement count is 30 years in prison, a $1 million fine, and three years of supervised release. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Contact:
United States Attorney’s Office
Eastern District of California
Contact: (916) 554-2700