Even In My Neck Of The Woods...

[Doktor Avalanche]

An Olivehurst man is among five people indicted Friday in federal court for a "cash back to buyer" mortgage fraud scheme that allegedly cost banks in Nevada City and South Lake Tahoe more than $1 million.

Gary Lorenzo George, 50, a tax professional, is charged with making false statements on loan applications, according to the U.S. Attorney's Office.

The eight-count indictment was returned by a federal grand jury in U.S. District Court in Sacramento.

George has an unlisted phone number and could not be reached for comment.

Dennis Aaron Moore, 50, of Hillsborough, conspired with George and three other defendants to submit mortgage loan applications containing false statements about Moore's income, employment, assets and compliance with tax obligations, said Acting U.S. Attorney Lawrence G. Brown.

George allegedly created letters to support Moore's false financial claims.

"The banks relied on these false statements in disbursing funds pursuant to the loans," Brown said.

Victimized banks included Washington Mutual (doing business as Long Beach Mortgage), Countrywide and FSB.

Moore bought five properties in Nevada City and South Lake Tahoe, insisting in each case that 20 percent or more of the purchase price be paid to Moore's real estate agent, Haiying Fan, 42, of Millbrae.

"In order to induce the seller to agree to such a commission, Moore often offered to purchase the properties at prices above the respective list prices," Brown said.

Once the sale was completed, Fan kicked back most of the commission to Moore.

Mitchell Wright, 36, of San Ramon allegedly created a bogus Web site to support Moore's false employment and financial claims. Veronika Wright, 33, of San Ramon, is also charged.

If convicted, George faces a maximum 30-year sentence for making false statements, although the final sentence is at the discretion of a federal judge.

The Internal Revenue Service worked with the U.S. Attorney's Office on the investigation.

The scary thing is that I had once considered Mr. George's services.