California Man Charged with Mortgage Fraud
Hubert Rotteveel, 49, Dixon, California, has been indicted and charged with mail fraud for a mortgage fraud scheme.
According to the indictment, Rotteveel acted as a real estate salesperson for 13 properties in Dixon that were purchased by two people. Rotteveel inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the purchasers in order to induce the lenders to fund loans for the properties.
For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company owned by Rotteveel, without disclosing to the lenders that these payments were made. A total of more than $700,000 was distributed to Windmill Properties under this scheme, and the lenders lost more than $3 million when all 13 properties underwent foreclosure.
United States Attorney Benjamin B. Wagner announced the indictment.
This case is the product of an extensive joint investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
If convicted, Rotteveel faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Courtesy Mortgage Fraud Blog