Operation Homewrecker Nets 19 Indictments

admin —  March 25, 2008 — 21 Comments

19 individuals were indicted for mortgage fraud-related offenses under Operation Homewrecker. The leader of this nationwide scam is Charles Head, 33, Los Angeles, California, who targeted homeowners in dire financial straits, fraudulently obtaining title to over 100 homes and stole millions of dollars through fraudulently obtained loans and mortgages. Operation Homewrecker is the product of an extensive investigation by the FBI and IRS Criminal Investigation.

The charges are broken out into two separate indictments, “Head One” and “Head Two”. Head One involved a foreclosure rescue scam, netting approximately $6.7 million in fraudulently obtained funds taken from 47 homeowners, nearly all of whom were located in California. Head Two involved an equity stripping scheme, netting approximately $5.9 million in stolen equity from 68 homeowners in states across the nation. While still targeting distressed homeowners and defrauding mortgage lenders through the use of straw buyers, this time Charles Head altered the scheme so that he would receive approximately 97 percent of the stolen equity, while his sales agents and employees, and the other defendants, would receive either the remaining 3 percent of equity or a salary from the fraudulently-obtained funding.

The following defendants were charged in the February 28, 2008 Head One indictment: Charles Head, 33, La Habra, California; Jeremy Michael Head, 30, Huntington Beach, California; Elham Assadi, aka Elham Assadi Jouzani, aka Ely Assadi, 30, Irvine, California; Leonard Bernot, 51, Laguna Hills, California; Akemi Bottari, 28, Los Angeles; Joshua Coffman, 29, North Hollywood; John Corcoran, aka Jack Corcoran, 52, Anaheim; Sarah Mattson, 27, Phoenix, Arizona; Domonic McCarns, 33, Brea, California; Anh Nguyen, 36, Los Angeles; Omar Sandoval, 32, Rancho Cucamonga, California; Xochitl Sandoval, 29, Rancho Cucamonga; Eduardo Vanegas, 28, Phoenix; Andrwe Vu, 39, Santa Ana; Justin Wiley, 28, Irvine; and Kou Yang, 32, Corona, California.

On March 13, 2008, the federal grand jury returned a five-count indictment in Head Two against seven defendants, including Charles Head, John Corcoran, Kou Yang, each also charged in Head One, as well as Keith Brotemarkle, 42, Johnstown, Pennsylvania; Benjamin Budoff, 41, Colorado Springs, Colorado; Domonic McCarns, 33, Brea; and Lisa Vang, 24, Westminster.

The Scheme Under Head One:

From approximately January 1, 2004 to March 14, 2006 , the defendants contacted desperate homeowners, offering two “options” allowing them to avoid foreclosure and obtain thousands of dollars up-front to help pay mounting bills. If the homeowner could not qualify for the “ first option,” which virtually none could, they would be offered the “second option.” Under the latter option, an “investor” would be added to the title of the home, to whom the homeowner would make a “rental” payment of an amount allegedly less than their mortgage payment, thereby allowing the homeowner to repair their credit by having the mortgage payments made in a timely fashion. Unfortunately all of this was a scam. The defendants would recruit straw buyers as the “investors” and oftentimes these individuals would in fact replace the homeowners on the titles of the properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants. Once the straw buyer had title to the home, the defendants immediately applied for a mortgage to extract the maximum available equity from the home. The defendants would then share the proceeds of the ill-gotten equity and “rent” being paid by the victim homeowner. When the defendants ultimately would sell the home, stop making the mortgage payment, and/or pursue an eviction proceeding, the victim homeowner was left without their home, equity, or repaired credit.

The Scheme in Head Two:

Instead of recruiting friends and family members as straw buyers, as in Head One, in Head Two the defendants recruited strangers via the Internet. They also used referrals from mortgage brokers to identify and solicit new victim homeowners. Beyond advertising on the Internet, the defendants also would send “blast faxes” to mortgage brokers throughout the country and generate mass emails to potential victims. Through material misrepresentations and omissions, victim homeowners would be offered what appeared to be their last best chance to save their homes. Unfortunately, as in Head One, these victims also were left without their homes, equity, or repaired credit.

The maximum statutory penalty for conspiracy to commit mail fraud is five years incarceration and a fine. The maximum statutory penalty for conspiracy to commit money laundering is 10 years incarceration and a fine. The maximum statutory violation for mail fraud is 20 years incarceration and a fine. The maximum statutory penalty for bank fraud is 30 years incarceration and a fine. The maximum statutory penalty for identity theft is 15 years incarceration and a fine. The actual sentence, however, will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and any applicable statutory sentencing factors.

The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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21 responses to Operation Homewrecker Nets 19 Indictments

  1. I guess it is not new to think that there are many people that are like MR. Head and think thay just ahve to take advantage of so many people. its not good enough that he did it a couple of times and made some good money but when someone has to get others involved and set the industry up to fail. lets just hope that both Head one and Head two can stick and Mr. Head and the others can pay for the loses that these homeowners have taken. the unfortinate thing is that there are many of the homeowners are never going to be able to fix ther credit and never going to get into the american dream again (home ownership)

  2. MY friend was scammed by Charles Head. Even though she is no longer in title, she is still living in her home. The mortgage is being foreclosed because there were no payments. The mortgage company is EMC Mortgage Corp which we understand has gone under and was a part of the scam. The straw buyer also from California has filed bankruptcy and is out of the loop. My friend just wants her house back. How can she get this done?

  3. I worked for Head Financial Services in 2002-2003 and was ultimately terminated for non-performance. I can tell you that these people were making more money than the law allows legitimately. Why they felt they had to brake the law and rip people off is a question only they can answer. The word greed comes to mind, but I don’t even think that describes what went on here. I can tell you that some of those named in the indictment like Kou Yang, Charles Head and his brother Michael were not the sort of people I would invite to dinner. They lived very decadent lives that seemed very out of control and material driven. They were like high school kids trying to out do each other. I’m so glad I was asked to leave before things got dirty. Who knows maybe they were doing illegal transactions while I was there and I didn’t even know it? I hope and pray that the judge throws the book at these perpatrators and gives them the maximum sentence. Hard time is the only thing that these individuals will understand. Their corrupted morals and values have driven them to ruin the lives of virtually hundreds of victims. Shame on them, may God have mercy on their souls. I’m sure the devil is saving a nice little corner for them in Hell!

  4. Mercy Lee Fok , Shuki Amar and his mother Alisa Amar (SB Properties) also are running this same scam in the Los Angeles area ,if you see any of these people run the other way. They are crooks to the nth degree. They pretend to want to help you, steal your equity and then they evict you from your own home.They should be in jail , but they are still cheating people out of their homes.

  5. My mother is a victim of this Homewrecker Scam. Even though she bought her home in 1978 in 2006 she received a 3 day writ to vacate and is not allowed to be in her home. My question is where are all the victims and how can i help get my moms house back for her

  6. I was scamed by Charles head and his crew and offered assistance from the victims speacialist, but I am still waiting for them to decide on how they can help me Talk is cheap. I have not known the agent in charge to show anything for the victim except i will transfer your call to someone who can help you. So i get an answering machine and there gone for a wee. talk about phone tag. So if there are other victims email back at r.f4peace.yahoo.com please don’t be shy victims have rights.

  7. He had so many houses he gave us so many things. i feel horrible now i now what he has done.i wonder if he even cares i apologise 2 every one who had there home taken away.If u know thw jail he is currently in i would be happy if u posted it-kiani head

  8. I too was scammed by the evil Charles Head/Dominic McCarns and Co. a few years ago. I did lose my house completely. I submitted everything to my local FBI office in Philadelphia who in turn, forwarded it to the Sacramento, CA FBI office. I NEVER heard from ANYONE, EVER until August 2010 when I got a letter from IRS agent Jason Lamb saying I had been identified as being a victim. I had to complete a form showing how much money I lost and include receipts/cancelled checks. I sent this to him in September 2010 but to date, I have not received any type of reimbursement.
    I want to know WHY the FBI never responded to the info sent to them? I emailed/called/sent regular mail NUMEROUS times and NO ONE had the courtesy to respond. Neither did the D.A.’s office. I contacted my senators/congressmen in the state of PA who once again, turned over everything to CA and still NO RESPONSE! If it hadn’t been for the IRS agent, I never would have even know Charles Head had been arrested YEARS ago. Why didn’t anyone bother to contact me??? Why won’t anyone have the decency to contact me now, now that my info was sent all over the state of CA!!!??? I LOST my house too. Why did everyone else hear from the FBI and victim’s rights specialists??? HOW IS THIS FAIR???? Once we realized this was a scam I saw a real estate attorney who said IF this was all proven to be fraud, the entire transaction would be negated and the house would revert back to me. THAT NEVER HAPPENED BECAUSE NO ONE BOTHERED TO CONTACT ME! Is there ANYONE that I can contact at this point or am I going to have to hire an attorney, which I cannot afford at all to sue whoever left me out of all of this????

  9. Kiani,

    Your father is not in jail.

  10. charles head is not in jail.

  11. How is the case going I have heard nothing and would like to know where about in trial is the case. What are the results so far. No one has ever tried to contact us regarding any sort of support or help. People, I too lost my home back in 2006 to this scam. As to this date I have heard nothing from anyone regarding this trial scam . We all have the right to know what is happening with the cases and those involved and deserve to get back our homes or the money it is worth. Please let us all know what we need to do to find oust any information regarding all of this trial.

  12. Samantha Rawlings April 1, 2011 at 4:29 pm

    I too am a victom of Charles Head and don’t know what to do. I have been contacted by Jason Lamb also but am in limbo needing legal help that I can’t afford. It is a shame that we are all in limbo waiting for justice to be served!!!!!

  13. Samantha, I emailed Jason Lamb a few weeks ago for the status of the $. He finished this account and submitted everything the first week of January 2011. It was my understanding we would receive checks within 2 weeks to 2 months from when he submitted. When 2 months passed, I emailed him asking why I apparently didn’t qualify for a return. (this was my email a few weeks ago-first week of March) He sent me a calculation of what he came up for me that I would be owed…but in reality, all 200 of us who he contacted are only getting (are you ready for this??) $1000.00 each. ONE THOUSAND DOLLARS. He said they only got $221,000 from Charles Head out of those millions. Oh and the checks won’t come until 2 weeks to 2 months AFTER the attorneys handling this approve everything. That’s what we’re waiting for. Attorneys to approve $1000 for each of us and then we have another 2 week to 2 month wait for checks to clear. It’s B.S., isn’t it? I’m sure they were paid right off the bat.
    I’ve been considering seeing an attorney again and filing a civil lawsuit against Charles Head and others. When they’re out of jail they will need to make money to survive, won’t they? Though I have no doubt they carefully stashed OUR money they stole in accounts in the Cayman Islands, etc. But at least civil suits would drag them out for a good, long time.

    Stef

  14. By the way, I’d like to add, I am NOT blaming/criticizing Jason Lamb for ANY of this. (the delay, pathetic check amount, etc) HE is the only reason that I know Charles Head and Co. were arrested since the FBI/D.A. of Sacramento never had the courtesy to contact me!

  15. This is now June 2011 and I have heard nothing regarding the case no one has contacted me regarding anything, and no word on how things are going in court. How are we going to find out anything. Who do we contact or is there a number to call. Is there anything that I can do now?

  16. I spoke with Michael Anderson at the US Attorney’s office. I understand that the cases were dismissed for Speedy Trial Act violations. Give him a call regarding this matter. Here is the info:

    United States Attorney’s Office
    Eastern District of California
    Contact: (916) 554-2700 (916) 554-2700

  17. Hello Stephanie we are in the same boat with no response promises no contact but yet these evil doers were living large while many of us woke up one day to a 3 day writ to vacate and had to leave via sheriffs Jason Lamb contacted me in around feb 2007 and quote un quote from jason lamb everyone is getting a check from what they siezed from them. But i believe if we all got together we can fight and will be heard more so than if we all fight single. ( we already no what that is like ) I just have a hard time accepting that i purchased my house originally in 1978 and in 2006 I the home owner was robed of her own domain JUSTICE. Aprox early dec late nov i spoke to the ca USDA and they said that they are pretty much out on a bond ( living life ) and there hearing won’t start until aprox 2013. If you would like to keep in touch we can. take care don’t give up there is a justice out there.

    • Ronda Farnsworth October 23, 2014 at 10:40 am

      Hello Stephanie, you probally don’t remember me but I had replied to you regarding the Charles Head scam On Operation Homewreck web site is mortgagefraudblog.com/operation_homewrecker_19_indictments/
      I just wanted to let you know what information i have received They were being sentenced Sept 24,2014 and on Oct ,22 2014 they were going to (figure out) how much they were to pay the victims. If this information is helpful if not i am sorry and if you wish me to not reply Let me know i will respect your wishes. ( they took my mothers house and , that is how i am here) Take Care.

  18. Concerned Citizen July 16, 2012 at 6:54 pm

    Interesting thing I just found out, Dominic McCarns is working at Loan Depot in Irvine and “helping” people with their home loans right now. How does that happen and who regulates what they are doing now while they are awaiting trial?

  19. My elderly parents are victims just like many of you. I asked my parents if we should file a civil lawsuit. They are tire and basically gave up. I think if their isn’t any cash return, then return the lost property.

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