David Saks: California Woman Sentenced to 10 Years in Prison for Mortgage Fraud

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

California Woman Sentenced to 10 Years in Prison for Mortgage Fraud

California Woman Sentenced to 10 Years in Prison in Multi-Million-Dollar Mortgage Fraud Scheme

U.S. Attorney’s Office August 15, 2013
  • Eastern District of California (916) 554-2700

WASHINGTON—Hoda Samuel, 62, of Elk Grove, California, was sentenced today to 10 years in prison for a mortgage fraud scheme that caused more than $5.5 million in losses, U.S. Attorney Benjamin B. Wagner announced.

Taking fraudsters out of the residential real estate industry and sending them to prison has been one of this office’s top priorities,” U.S. Attorney Wagner said. “Today’s sentence is another success in our fight against the mortgage fraud schemes perpetrated by Hoda Samuel and her co-defendants that wreaked havoc in this region.”

“Greed-based crimes such as these can undermine the stability of our financial institutions and the economy, resulting in devastating consequences for homeowners, businesses, and communities in which the properties are located,” said Special Agent in Charge Monica M. Miller of the Sacramento Division of the FBI. “The FBI continues to be committed to identifying and investigating mortgage fraud schemes, such as those committed by Hoda Samuel and her associates.”

“Today’s sentencing of Ms. Samuel is a warning to those who abuse their position of trust to unjustly enrich themselves, the consequences can be severe,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Mortgage fraud has hurt so many people and so many of our communities. This sentencing highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”

According to evidence presented at trial, Samuel, a licensed real estate broker, owned and operated real estate agency Liberty Real Estate & Investment Company and Liberty Mortgage Company.

The government presented evidence of 30 fraudulent sales transactions between April 5, 2006 and February 26, 2007.

Samuel was the real estate agent for the buyer in 29 of the home sales and, in at least 15, also represented the seller.

Each transaction involved false statements on loan applications in order for unqualified buyers to qualify for the loans.

These included false statements about income, employment, and rental history.

False documents were created and submitted to lenders to support these lies.

Persons were paid to answer lender calls and affirm the false statements.

All of the properties went into foreclosure.

According to court documents, Samuel not only falsified the borrowers’ ability to repay the loans, she also falsified the value of the collateral securing these loans.

Fraudulent purchase prices, often exceeding the actual asking prices by $15,000 to $40,000, were inserted into contracts that included repairs and costs for disability access modifications.

At times, the buyers’ minor children were named as building contractors so that money could be funneled back to buyers. The excess amounts were paid back to the buyers.

The repairs and remodeling were seldom if ever done, and the lenders were unaware that the true purchase price for each property was below the total amount funded.

Because Samuel saddled the banks with borrowers incapable of making payments, and properties worth less than the loans, loss was practically assured regardless of the market.

Eight of Samuel’s associates in the scheme pleaded guilty prior to trial and are awaiting sentencing.

This case is the product of an investigation by the FBI and IRS-Criminal Investigation. Assistant U.S. Attorneys Philip A. Ferrari and Todd A. Pickles are prosecuting the case.

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



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 4 commentsDavid Saks • August 16 2013 01:34PM


David  These crimes are really sad

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) about 7 years ago

They're very sad, Hannah. These crimes destroy good people's lives.

Posted by David Saks ((retired)) about 7 years ago
David, I believe that with these cases of mortgage fraud there should be tough penalties that actually are enforced...that should cause most to think twice.
Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) about 7 years ago

I agree, Nick. Unbelievably, these crimes are very common now and are becoming more sophisticated as legislation evolves to prevent them.

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

This blog does not allow anonymous comments