Ali Khalil, 32, Amanullah Khalil, 39, and Wahidullah Khalil, 27, all of Elk Grove, California, pleaded guilty to charges arising out of a mortgage fraud scheme.
Ali Khalil, a former Elk Grove police officer who holds a bachelor’s degree in criminal justice, pleaded guilty to wire fraud and structuring financial transactions to evade currency transaction reporting requirements. Amanullah Khalil, who described himself as a businessman and entrepreneur, pleaded guilty to making false statements on a loan application. Wahidullah Khalil, a former banker who also holds a bachelor’s degree in criminal justice, pleaded guilty to structuring financial transactions to evade currency transaction reporting requirements.
According to court documents, Ali Khalil submitted fraudulent loan applications in connection with his purchase and subsequent refinance of homes in Elk Grove and Watsonville, California. The applications inflated his income and assets, falsely stated that he intended to occupy each home as his primary residence, and failed to disclose the existence of the other property. After receiving the proceeds of one of the loans, Khalil made bank deposits of $9,800 on two successive days. The reason these deposits were split up was to evade currency reporting requirements that are triggered by deposits over $10,000.
According to court documents, Amanullah Khalil submitted fraudulent loan applications in the name of his wife in connection with a loan and a home equity line of credit (HELOC) on a residence in El Dorado Hills, California. The applications falsely inflated his wife’s income and assets, falsely stated that the couple intended to occupy the home as their primary residence, and falsely stated that his wife intended to use the proceeds from the HELOC to expand her business. In fact, the money that Khalil and his wife obtained from the fraudulently obtained loans was used to purchase cars in Afghanistan.
According to court documents, Wahidullah Khalil made bank deposits of $9,800 on two successive days for the purpose of evading the currency transaction reporting requirements. Eventually, that money along with other money supplied by his two co-defendants was used to purchase a property in Folsom. As part of the plea agreement, all three defendants have agreed to forfeit to the United States any right, title or interest they have in that property. In addition, Ali Khalil and Amanullah Khalil will be required to pay restitution to the defrauded lenders. That restitution is expected to be approximately $300,000 for Ali Khalil and approximately $486,000 for Amanullah Khalil.
The defendants are scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on November 2, 2012. They face a maximum sentence of 30 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
United States Attorney Benjamin B. Wagner announced the guilty pleas.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney R. Steven Lapham is prosecuting the case.
The announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF). President Obama established the interagency FFETF to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. One component of the FFETF is the national Mortgage Fraud Working Group, which is tasked with combating mortgage fraud schemes. For more information on the task force, visit www.StopFraud.gov.