Tony Daniloo, 30 and his wife, Nansi Masihi Daniloo, 29 were arrested and charged with 41 counts of felony grand theft in Alameda County, California in connection with frauds involving property transactions for specific individuals. Their company, Dreamlife Financial, was shut down last week. The Modesto Bee is reporting that the U.S. District Court in Fresno released an affidavit after a search of the Daniloo’s home and seizure of, among other things, documents and computer records. The affidavit includes allegations that Dreamlife employees altered documents to obtain loans for unqualified borrowers, employees were pressured to doctor financial records and credit reports were altered. No federal charges have been filed.

Last week, First American Title Insurance Co. of Santa Ana filed a complaint against Daniloo in Stanislaus County accusing Daniloo of diverting escrow funds of at least $4 Million from escrow accounts of clients of Dreamlife. According to the Modesto Bee the affidavit alleges a First American escrow officer was involved and "manipulated the documents in the escrow file to show that the old mortgage loans had been paid off when in fact they had not been paid."