Adel Afkarian and Atef Afkarian each entered a guilty plea in federal court in San Diego, California, in connection with a fraud scheme involving sales of million-dollar homes in San Diego and Del Mar, California.
The defendants pled guilty to count one of a Superseding Indictment charging them with conspiracy to commit mail fraud and wire fraud.
In connection with the entry of their guilty pleas, both defendants, who worked through entities known as The Better Mortgage Company and Elite Coast Realty, admitted that they fraudulently obtained the entire proceeds of the sales of homes in Del Mar, La Jolla, and San Diego from innocent purchasers who were unaware that the defendants had hidden the existence of outstanding liens on the properties held by institutional lenders.
The defendants also acknowledged that they used sham entities to execute and record documents falsely purporting to affect the legal title to the properties, including fraudulent deeds of trust and reconveyances that falsely purported to totally eliminate the existing debt to institutional lenders secured by the properties.
During the course of the scheme the defendants sold their own property and properties of others with a combined sales price of more than $4,000,000.
Defendants Adel Afkarian and Atef Afkarian will appear before United States District Judge John A. Houston for sentencing on March 17, 2014, at 8:30 a.m.
United States Attorney Laura E. Duffy announced the guilty pleas.