David Saks: FORMER ATTORNEY / REAL ESTATE BROKER SENTENCED TO 6 YEARS IN PRISON

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

FORMER ATTORNEY / REAL ESTATE BROKER SENTENCED TO 6 YEARS IN PRISON

Westminster Man Sentenced to 72 Months in Prison for Orchestrating a $1.7 Million Real Estate Scheme

U.S. Attorney’s Office February 01, 2013
  • District of Colorado (303) 454-0100
 

DENVER—Steven J. Mascarenas, 53, of Westminster, Colorado, was sentenced recently by U.S. District Court Judge Robert E. Blackburn to serve 72 months in federal prison for wire fraud, making a false statement to a pretrial services officer, and escape, U.S. Attorney John Walsh, Denver FBI Special Agent in Charge James Yacone, and IRS-Criminal Investigation Special Agent in Charge Stephen Boyd announced. Mascarenas was ordered to spend three years on supervised release after he serves his term of imprisonment. Judge Blackburn also ordered Mascarenas to pay restitution totaling $1,776,152.21. Mascarenas will surrender to the Bureau of Prisons once a facility is designated.

Steven Mascarenas was indicted on April 22, 2010, along with co-defendants Kathy Mascarenas (wife of Steven) and Katrina Roberts. He pled guilty on July 3, 2012, before Judge Blackburn. Katrina Roberts pled guilty and was sentenced to 20 months in prison on July 27, 2012. Kathy Mascarenas pled guilty and was sentenced to 24 months in prison on November 6, 2012.

According to court documents, in 2004, Defendant Steven J. Mascarenas, then an attorney and licensed real estate broker, orchestrated the purchase and resale of residential properties in The Broadlands, a subdivision in Broomfield, Colorado. He arranged to have individuals serve as “credit buyers” to obtain loans, purchase the properties, and resell them shortly thereafter at inflated prices to other “credit buyers” in his select group. He concealed from the lenders that these “credit buyers” were only acting at his direction and were being compensated after the closings for their participation in having obtained the loans and purchased the properties.

Mascarenas had Roberts prepare appraisal reports in which she fraudulently inflated the fair market values of the properties by $100,000 to $325,000. To make the inflated values in all  her reports appear legitimate, she falsely represented that the purchases, which were actually sales at market value, were “distressed” sales, or “quick” sales below market value.

Then, based on the fraudulent appraisals, Steven Mascarenas set the prices for the resales far beyond their true market values and arranged for the buyers to obtain 100 percent financing for them.

To ensure that the desired funding would be approved for the buyers for both the purchases and the resales, Steven Mascarenas caused false information about their qualifications to be incorporated into their loan applications to enable them to qualify for the loans.

He caused the proceeds from the second sales to be directed to entities of his choice.

Kathy Mascarenas conducted financial transactions as necessary to facilitate, perpetuate, and conceal the fraud.

All of the loans went into default, and the loss to the lenders was approximately $1,776,162.21.

While out on bond in the fall of 2011, Mascarenas repeatedly lied to his supervising pretrial services officer, telling him that he was employed making sandwiches at a local Quizno’s restaurant. In fact, he was managing the store under the assumed name of “Steven Jay,” in violation of the conditions of his bond.

In June 2011, as a condition of Steven’s bond, he was required to reside in a halfway house, and he was not permitted to leave the facility without permission. Hours before he was to be taken to a prison facility, he fled. An arrest warrant was issued, and on December 4, 2011, Steven was arrested by the Lakewood Police Department at a motel in Lakewood, Colorado.

“Mortgage fraud harms everyone involved in buying a home—buyers, appraisers, real estate agents, and bankers,” said U.S. Attorney John Walsh. “Lying on mortgage applications is a fraud and a federal criminal felony. As the financial crisis of 2007 and 2008 showed us, following the rules in real estate transactions matters—and those who don’t face time in federal prison.”

“Mortgage fraud has had a significant impact in Colorado,” said Denver FBI Special Agent in Charge James Yacone.

“Mascarenas was an attorney and licensed realtor who used his professional license to instill trust in others. His conviction and recent sentencing sends a clear message that using positions of trust to commit fraud will not be tolerated.”

“Mortgage fraud erodes our economy and threatens the financial health of the communities in which we live; this sentence reminds us there are consequences for committing such fraud,” said Stephen Boyd, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office.

This case was investigated by the Federal Bureau of Investigation and the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorneys Linda Kaufman and James Allison.

source: FBI



David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 8 commentsDavid Saks • February 01 2013 02:31PM

Comments

Hello David:  who would believe it, a crooked attorney?  I know we shoulnd't let one bad apple spoil the whole bunch, but its difficult at times to know which one is the bad apple.

Posted by Brian Rugg, Sun City TX Real Estate - Georgetown, TX Real Est (Rugg Realty LLC Sun City Texas 512-818-6700) about 7 years ago

If you find a dead worm on the floor anywhere near the  the closing table, no one leaves the room and take names, Brian.

Posted by David Saks ((retired)) about 7 years ago
David, the wheels of justice turn slowly but eventually they do catch up. This is a prime example and I hope it will not be the last. Mortgage fraud during those years has affected many areas across the US and home owners are still suffering from the fall out of it.
Posted by Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES, Florida Waterfront and Country Club Living (Tropic Shores Realty - Ich spreche Deutsch!) about 7 years ago

It is good to see that those that try to scam consumers and companies are being handled. Some people have no shame in what they do....

Posted by Frank Laisch, "The Insurance Guy" about 7 years ago

David, If the 72 months isn't enough he has the restitution payment on top of it. How do people think that they won't get caught all is a big surprise to me.  

Posted by Adrian Willanger, Profit from my two decades of experience (206 909-7536 AdrianWillanger-broker.com) about 7 years ago

Mortgage fraud is a wolf in sheep's clothing, Silvia.

Seems like there's not a trap big enough to stop it, but we're working on it. It's one pest that just won't go away. The harder the legislators and the lenders make it to commit, the more sophisticated and crafty the lowlife's schemes get.

Posted by David Saks ((retired)) about 7 years ago

Absolutely agreed, Frank. Nice to hear from you.

Posted by David Saks ((retired)) about 7 years ago

How's that shyster going to pay everyone back slinging burgers from the halfway house in six years, Adrian ? :-)

Posted by David Saks ((retired)) about 7 years ago

This blog does not allow anonymous comments