Former Loan Officer Admits Stealing $400,000 from Borrowers

Allison Tussey —  August 16, 2013 — Leave a comment

Kamalu Gonzales, 47, Henderson, Nevada, a former loan officer who convinced over 30 victims to give him money for a high yield investment scheme involving the foreign currency exchange market, has pleaded guilty to federal fraud and money laundering charges.

The defendant pleaded guilty on Monday, August 12, 2013, before U.S. District Judge Gloria M. Navarro to two counts of mail fraud, six counts of wire fraud, and two counts of money laundering. Gonzales is scheduled to be sentenced on November 14, 2013, and faces up to 30 years in prison and a $1 million fine on each of the fraud charges and up to 10 years in prison and a $250,000 fine on each of the money laundering charges.

According to the court records, from approximately 2007 to 2008, Gonzales told individuals that he was a successful investor and trader in the foreign currency exchange market. Gonzales recruited individuals to invest with him in the market, telling them that they could earn high rates of return on their investments in a short period of time. Some of the victims wired money to Gonzales, and others borrowed money from their retirement fund, line of credit, or refinanced their houses in order to invest with him.

During 2007, Gonzales worked as a loan officer for Meridias Capital, Henderson, Nevada. Gonzales helped persons refinance their homes and placed false information in the loan applications so the individuals could obtain refinancing and cash to which they would not have otherwise been entitled. Gonzales convinced these individuals to give him some of the cash they received from refinancing for his investment fraud scheme. None of the victims agreed to pay Gonzales any commissions or fees or agreed that he could use their investments for personal or business expenses or to pay other investors.

In order to continue the scheme and to keep victims from discovering the crime, Gonzales lied to the victims repeatedly and told them their investments were doing well. As a result of the lies, some victims gave Gonzales more money to invest. Gonzales also made payments to some of the victims using monies he received from other victims.

Gonzales received approximately $1 million total from over 30 victims in 2007 and 2008. Gonzales did not invest the victims’ funds as promised and diverted approximately $410,000 for his own personal purposes.

Gonzales is free on a personal recognizance bond pending sentencing.

Daniel G. Bogden, United States Attorney for the District of Nevada, announced the guilty plea.

The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Kathryn C. Newman and Kimberly M. Frayn.

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