Twenty-Four Charged in RICO Conspiracy

admin —  April 8, 2009 — 13 Comments

Twenty-four individuals have been charged with using a corrupt enterprise to conduct a pattern of racketeering activity, namely, wire fraud, bank fraud, and money laundering. The charged racketeering activity all stems from an extensive mortgage fraud scheme based in San Diego, California, that involved 220 properties with a total sales price of more than $100 million dollars.

The lead defendants charged with running the corrupt enterprise are: Darnell Bell, aka D-Bell, Michael Ivy, Stanley Gentry and Billie Bishop. The indictment alleges that Darnell Bell, a documented member of the Lincoln Park street gang, was the leader of the corrupt enterprise and that he received at least $9 million in proceeds from the racketeering conspiracy. Michael Ivy was primarily responsible for negotiating the purchase of real estate on behalf of the enterprise. Stanley Gentry, a licensed real estate broker, allowed the corrupt enterprise to use his broker’s license to facilitate the fraudulent purchase of property in exchange for a $10,000 monthly payment and a percentage of the real estate commission and broker’s fees associated with each fraudulent purchase. Billie Bishop was an escrow officer who facilitated the fraudulent purchase of more than 100 properties on behalf of the enterprise.

The Indictment alleges that the defendants devised a scheme to defraud mortgage lenders and to obtain money and property by false and fraudulent means. According to the indictment, between January 2005 and at least April 2008, the defendants used multiple real estate businesses, including the Ivy House, Inc., the Real Estate Center of Southern California, and the Real Estate Center of La Mesa, to facilitate the fraudulent purchase of real estate. In general terms, the scheme charged in the indictment worked as follows:

  • Defendants identified properties for sale throughout Southern California that had been on the market for an extended period of time and for which the original asking price had been reduced.
  • Defendants then recruited “straw buyers” who allowed their names and credit histories to be used to obtain mortgage loans and purchase properties in name only on behalf of the racketeering enterprise.
  • Defendants prepared and submitted offers to purchase the identified properties that substantially exceeded the asking price for those properties.
  • Defendants hired real estate appraisers, including co-defendant Esteban Valenzuela, to prepare inflated appraisals for the identified properties; the inflated appraisals were then used to fraudulently induce lenders to believe that the loans being given to the “straw buyers” would be fully secured by the value of the properties being purchased.
  • Defendants prepared and submitted false loan applications for the “straw buyers” in order to induce lenders to make loans to persons and at terms that the lenders otherwise would not have funded.
  • Defendants prepared and submitted false documents and information in response to lender verification inquiries, including “CPA letters,” verification of employment forms, verification of rent forms and “discrepancy letters.”
  • Members of the Enterprise ensured that the “straw buyers” purchased the identified properties with mortgages amounting to 100 percent of the purchase price of the property, thus ensuring that the defendants did not have any money at risk in the fraudulent transactions.
  • Defendants arranged to have the amount of money that exceeded the asking price (i.e., the “kickback amount”) paid at the close of escrow to a shell construction company maintained by the racketeering enterprise.
  • Defendants falsely informed the lenders that the “kickback amount” would be used to pay for handicap accessing and property upgrades to the identified properties, thereby falsely inducing the lenders to believe that the entire loan amount would be secured by the value of the identified properties.
  • Based upon the investigation to date, none of the properties that were purchased as part of the enterprise had any handicap accessibility or property upgrades performed by the defendants’ shell firm, Bell Construction.
  • Defendants disbursed the “kickback amount” to members and associates of the racketeering enterprise as payment for those individuals’ participation in the fraudulent scheme.
  • The “straw buyers” subsequently failed to make the required mortgage payments for the fraudulently purchased properties, which ultimately resulted in the properties’ being foreclosed and the lenders’ suffering severe financial losses.

The indictment also charges that several real estate professionals were members of the racketeering conspiracy, including: Diana Jaime, a public notary, Jorge Cortez, a licensed real estate agent, Esteban Valenzuela, a licensed real estate appraiser, Anton Ewing, a Certified Public Accountant, and Randolph Hirsch and Dennis Tapia, registered tax preparers. Latashia McKinney and Marcus Dozzell, aka Kali, recruited individuals to obtain fraudulent mortgage loans and purchase properties on behalf of the corrupt enterprise. Lorena Callu was employed by the corrupt enterprise and facilitated the fraudulent purchase of real estate by, among other things, preparing and submitting false loan applications. Desiree Holiday, Dexter Holiday, Keith Holiday, Gerard Holiday, Ray Logan, aka Jack Nasty, David Lewis, Joseph Lewis, Stevie Frazier, Jorge Magana, Nicoele Watson and Daniel Williams are all alleged to have fraudulently obtained mortgage loans and purchased properties on behalf of the corrupt enterprise.

This case is the product of an investigation by agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Todd W. Robinson and Nicole Acton Jones are prosecuting the case.

United States Attorney Hewitt said, “This indictment represents the largest mortgage fraud case ever prosecuted in the history of the Southern District of California. Although this case marks an important milestone for the U.S. Attorney’s Office, the FBI, and the IRS, we have much additional investigative work ahead of us to hold accountable those individuals who engaged in similar mortgage fraud schemes throughout San Diego and Imperial counties.

FBI Special Agent in Charge Keith Slotter commented, “The individuals charged in this indictment have one thing in common: greed. They represent precisely those who have undermined our country’s financial system by perpetuating such egregious schemes. The FBI and our law enforcement partners remain vigilant and will pursue those who engage in this type of criminal activity. The extent to which this group of people went to defraud lenders should also serve as a warning to the public. We urge people to come forward with information of suspicious activities they may encounter when engaged in real estate and mortgage transactions.

Today’s indictment of this criminal enterprise spearheaded by Darnell Bell speaks volumes to those who choose to engage in organized criminal activity that undermines the financial health of our communities,” said Thomas J. Holloman, Acting Special Agent in Charge, IRS-Criminal Investigation, Los Angeles Field Office. “The racketeering, forfeiture, and money laundering charges are indicative of the jointagency law enforcement effort that has focused on dismantling this criminal organization that has grossly profited from mortgage fraud.

Darnell Bell was arraigned on the indictment earlier today. Twenty-three individuals were arrested by agents of the FBI and IRS earlier today and are expected to make their initial appearances on April 8.

Darnell Bell, aka D-Bell, 38, Chula Vista, California; currently in federal custody serving a sentence for the distribution of cocaine
Michael Ivy, 43, San Diego, California
Stanley Gentry, 49, San Diego, California
Billie Bishop, 49, La Mesa, California
Diana Jaime, 33, Chula Vista, California
Latashia McKinney, 35, Texas
Marcus Dozzell, aka Kali, 34, Las Vegas, Nevada
Jorge Cortez, 39, Chula Vista, California
Esteban Valenzuela, 28, Sun City, California
Lorena Callu, 52, Chula Vista, California
Anton Ewing, 38, Rancho Santa Fe, California
Randolph Hirsch, 43, Van Nuys, California
Dennis Tapia, 49, Oceanside, California
Desiree Holiday, 34, Chula Vista, California
Dexter Holiday, 35, San Marcos, California
Keith Holiday, 50, Ramona, California
Ray Logan, aka Jack Nasty, 39, Spring Valley, California
David Lewis, 44, Chula Vista, California
Joseph Lewis, 43, San Diego, California
Gerard Holiday, 25, El Cajon, California
Stevie Frazier, 38, Spring Valley, California
Jorge Magana, 58, National City, California
Nicoele Watson, 28, San Diego, California
Daniel Williams, 34, San Diego, California


Title 18, United States Code, Section 1962(d) – Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 – Criminal Forfeiture The charged pattern of racketeering activity includes violations of Title 18, United States Code, Section 1343 (Wire Fraud); Title 18, United States Code, Section 1344 (Bank Fraud); Title 18, United States Code, Sections 1956(h) and 1957 (Conspiracy to Launder Money); Title 18, United States Code, Section 1957 (Money Laundering)

Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release.


Federal Bureau of Investigation Internal Revenue Service – Criminal Investigation

Be Sociable, Share!


Posts Google+

13 responses to Twenty-Four Charged in RICO Conspiracy

  1. JOE SNICKLEBLAUS December 27, 2012 at 5:22 pm

    June 27, 2011

    State of California
    Board of Accountancy
    Sacramento, CA
    REF: Anton A. Ewing, CPA License #83510
    The above-named individual was convicted in state court one count of felon stalking and extortion. He was also convicted in Federal court of using a corrupt enterprise to conduct a pattern of racketeering activity, namely, wire fraud, bank fraud, and money laundering.
    Mr. Ewing spent approximately two years in jail in San Diego County on the State charges and was granted parole in that case. On the Federal charges, he served time as follows:
    Inmate Locator – Locate Federal inmates from 1982 to present
    Register # 13922-298
    Age 40
    Race White
    Sex M
    Release Date 10-22-2011
    His accounting license is listed as follows on your website:
    Licensee Name: ANTON A EWING
    License Type: Certified Public Accountant
    License Number: 83510
    License Status: DELINQUENT Definition
    Experience Completed: G Definition
    Expiration Date: June 30, 2010
    Issue Date: July 02, 2002
    Address: P O BOX 2732
    18103 VIA ASCENSO
    State: CA
    Zip: 92067
    County: SAN DIEGO
    Disciplinary Actions/License Restrictions: No
    Mr. Ewing has two felony convictions and is still practicing accountancy in San Diego. His webpage is and continues to offer services prohibited by his felony convictions as well as his delinquent license.
    We would appreciate your taking appropriate actions to enforce the Business and Professions Code of the State of California by revoking/suspending his license to practice.
    Thank you

    A Concerned Citizen

  2. Such b——-! I know some of those people had no idea of what was going on and are unfairly serving a sentence for a crime they did not commit, such a shame!

  3. « HUD Addresses Root Causes of Foreclosure CrisisSupreme Court to hold hearing on foreclosure program »Leader of mortgage scam pleads guilty
    Gang member’s scheme caused huge bank losses


    Saturday, March 6, 2010 at 12:04 a.m.

    FEDERAL COURT — a San Diego gang member who federal authorities said was the leader of a massive mortgage fraud scam pleaded guilty yesterday to participating in a racketeering conspiracy involving bank fraud, money laundering and other crimes.

    Darnell Bell, 39, faces a maximum of 20 years in prison. Prosecutors said he was a chief orchestrator of a fraud and kickback scam that used straw buyers, fraudulent loan applications and bogus escrow documents on more than 100 properties in San Diego County.

    The scheme resulted in real estate losses between $20 million and $50 million.

    He’s the fourth person, and second principal,

  4. bank account Bell set up contained $9 million in proceeds.

    Ivy was alleged to have pocketed $200,000 during the time of the scheme, which took advantage of the lax lending standards widely at play during the real estate bubble years.

    Because the case is still active, the U.S. Attorney’s Office declined to comment on the plea yesterday.

    Two other principals still face charges. Stanley Gentry, a real estate broker, allowed the ring to have access to the multiple listing service and received a $10,000 fee per month, according to the indictment.

    One other defendant, Billie Bishop, was the escrow officer on more than 100 transactions.

    No trial date has been set, but court records show plea deals are on the table for some of the straw buyers.

    The lawyer for one of those buyers said in a court filing that prosecutors have a “package deal” proposal for eight of the buyers, including her client, Ray Logan.

    The others are not identified, and the indictment lists at least 13 straw buyers.

    Damiani said they are weighing the offer, which, as a package deal, must be accepted by all defendants or none of them gets it.

    She declined to outline the terms of the deal but said the penalty would be “significantly lower than what my client would face if he went to trial and was convicted of all the charges.”

    One straw buyer, Marcus Dozell, pleaded guilty to racketeering conspiracy and was sentenced Feb. 16 to 46 months in prison.

  5. WOW

  6. WELL!

  7. so gang member try get girls work is prostitute for then pimp dexter holiday always on strip club looking for girl
    i meet these dude before!

  8. also they are facebook look for friends and my space and bebo looking for girls so they can pimp womans
    they are looser i hope obama put then way prison is not good place for greed people

  9. put way in prison they are gang member
    pimp they like used womans look 7 month pregnant woman come on they are guilt they are player!

  10. President of Global Financial Group. A realestate brokerage and loan company.

  11. What happened to lorenzo Espinoza?

  12. Wanna bet the appraiser doesn’t lose his license?

  13. What is happening to the straw buyers that helped them? Hopefully besides bad credit, they get some sort of penalty because the scheme would have been harder to do without them. Since I am sure they received some sort of financial compensation, they are guilty too.

    It’s like the borrowers saying they didn’t know that the loan application wasn’t true.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>