Archives For Indiana

Sergio Garcia, Sr., 46, Chicago, Illinois and Sergio Garcia, Jr., 27, Lowell, Indiana were indicted by a federal grand jury and charged with conspiracy to commit mail fraud and ten substantive counts of mail fraud.  The indictment also charges Timothy D. Greene, 29, Lansing,Illinois with submitting fraudulent information to HUD. All three were charged in connection with their part in a house flipping scheme involving HUD properties.

The indictment alleges that between January 1, 2011 and May 31, 2014,  Sergio Garcia, Sr. and Sergio Garcia, Jr. conspired with others known and unknown to the Grand Jury to engage in a scheme to defraud and to obtain money by means of false pretenses, representations and promises.

The alleged scheme involved offering to buy more than 40 HUD homes situated in the following cities or towns in Indiana:  Gary, Hammond, Merrillville, Whiting, East Chicago, Hobart, St. John, Valparaiso, and Lake Village; as well as the following cities or towns in Illinois:  Cicero, Chicago, Maywood, Alsip, Stone Park, Riverdale, Chicago Heights, Berwyn, Lansing, Stickney, and Evergreen Park.  The conspirators sought to purchase the homes from HUD and sell them the same day or soon thereafter for a profit to subsequent buyers.

The purchase contracts provided to HUD to purchase the properties stated that the conspirators or one of their businesses were purchasing the properties as investors and would pay with cash or use other financing not involving FHA.  To support their claimed financial ability to pay for the homes, the conspirators mailed fraudulent letters purporting to show that they or their company had access to the funds needed to complete each purchase.  Many of the letters purported to be written by a private venture capital business and falsely stated that a conspirator or their business held a line of credit of up to $500,000.00, when in fact, as the conspirators well knew: these letters were altered, forged and counterfeited; the lines of credit referenced therein did not exist; and the signatures thereon were forged and unauthorized.

The alleged scheme further involved the conspirators placing their own “for sale” signs at the HUD homes before their purchase from HUD had occurred.

When the conspirators could not find a subsequent purchaser to buy the homes, they allowed their purchase contracts with HUD to expire.  The conspirators filed false liens on many of the HUD homes after their purchase contracts expired.  The false liens hindered HUD from selling the homes to subsequent purchasers.  The conspirators requested money from subsequent purchasers to release the false liens.

The indictment also alleges that on or about February 13, 2012, Timothy Daniel Greene provided a fraudulent letter to HUD stating he held an approved line of credit with a venture capital business and that he did so for the purpose of influencing HUD to approve a purchase offer he had submitted for a property in Chicago, IL.

The indictment was announced by United States Attorney David A. Capp.  The case is being investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General.  The case is being prosecuted by Assistant United States Attorney Jill R. Koster.

Minas Litos, 50, Saint John, Indiana; Adrian Tartareanu, 45, Saint John, Indiana; and Daniela Tartareanu, 44, Saint John, Indiana; were sentenced in federal court by Chief Judge Philip Simon  for conspiracy and wire fraud.

Litos entered a plea of guilty to one count of conspiracy and sixteen counts of wire fraud and was sentenced to 18 months imprisonment.  The Court will determine whether restitution should be imposed at a later date.

Adrian and Daniela Tartareanu were found guilty by a jury of one count of conspiracy and sixteen counts of wire fraud.  Adrian Tartareanu was sentenced to 36 months imprisonment.  His wife  Daniela Tartareanu was sentenced to 21 months imprisonment.

Minas Litos and Adrian Tartareanu owned Red Brick Investment Properties.  Daniela Tartareanu was the office manager.  They participated in an illegal scheme in which they convinced others to buy homes in Gary, Indiana.  To induce the individuals, the defendants told prospective buyers that they were not required to provide down payment funds, and that the rental income would cover the costs associated with owning rental property.  They concealed from the lenders and title companies that they paid the down payment money on behalf of the buyers.  They also paid kickbacks to the buyers.  The scheme lasted two years and involved 45 fraudulent transactions.    As a result, more than $2.5 million dollars was fraudulently obtained from the lenders with almost all the buyers subsequently defaulting on the loans.  Many of the properties are now vacant or considered a total loss by the lenders.

The sentence was announced by United States Attorney for the Northern District of Indiana, David Capp, and investigated by the Federal Bureau of Investigation.  The case was handled by Assistant United States Attorneys Gary T. Bell and Jill Koster.

Brian Kandefer, 37, San Diego, California, was sentenced to 121 months imprisonment and ordered to pay $1.4 million dollars in restitution after his guilty plea to wire fraud and money laundering.

According to documents in the case, K2 Capital Management Inc. did business as US Mortgage Bailout and USMortgageBailout.com with physical offices located in La Jolla, California.  Brian Kandefer was a 50% owner of K2 Capital Management Inc. dba US Mortgage Bailout and dba USMortgageBailout.com.  Continue Reading…

Hrong Arman Gasparian, 67, Fishers, Indiana, was convicted of 10 counts of wire fraud after a three-day jury trial before U.S. District Judge Sarah Evans Barker.  He was convicted for his involvement in two fraudulent schemes that swindled prospective borrowers of hundreds of thousands of dollars.

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Eloise Blackmon, Gary, Indiana, was sentenced to 10 months in prison for her role in a mortgage fraud scheme. Upon release, Blackmon was also sentenced to supervised release for a period of two years. The scheme involved the purchase and sale of up to 25 properties. The defendant and her co-conspirators submitted false and fraudulent documents to lenders in order to qualify the borrowers for loans.

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Jeffrey Youngheim, 47, Portage, Indiana, and Richard Loveless, 52, Gary, Indiana, were sentenced by District Judge Joseph Van Bokkelen for their roles in a large-scale mortgage fraud scheme.

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John Carlisle, 49, New Haven, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of making false statements and reports regarding mortgage loans and aiding and abetting in such conduct.

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Brian Edwards, 50, Fort Wayne, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment, 2 years supervised release and of $400,000 in restitution after pleading guilty to the felony offense of making false statement in connection with a mortgage loan and mortgage insurance.

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Todd Van Natta, Seymour and Columbus, Indiana, was sentenced by U.S. District Judge William T. Lawrence to 60 months in federal prison after pleading guilty to 10 counts of bank fraud, three counts of wire fraud, and two counts of tax fraud.

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Shela Amos, Indianapolis, Indiana, was sentenced to 34 years for defrauding victims by using the vacant home sale scheme whereby the defendant sold homes she did not own.

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