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California Loan Officers Rafael Santiago and Angel Armendariz Guilty of Mortgage Fraud
The U.S. Attorney for the Southern District of California, Karen Hewitt, announced that former mortgage loan offers Rafael Santiago and Angel Armendariz pled guilty today in federal court in San Diego to conspiring to commit wire fraud in connection with a $16 Million mortgage fraud scam. Three other loan officers — Abner Betech, Said Betech, and Aviva Betech — already pleded guilty to conspiring to commit wire fraud.
According to court documents, Rafael Santiago, Abner Betech, Said Betech, Aviva Betech, and Angel Armendariz admitted to committing mortgage fraud. In 2005, Abner and Said Betech and others founded Creative Financial Solutions, Inc. (“CFS”), a mortgage brokering company formerly located at 707 Broadway Avenue, Suite 1720, San Diego. CFS was in the business of sending loan application packages and other documents to lenders for review and funding. CFS did not fund loans but received commissions from the lenders when the loans closed. All five also often received kickback payments when loans closed.
Rafael Santiago, Abner Betech, Said Betech, Aviva Betech, and Angel Armendariz admitted in court that CFS obtained mortgage loans for unqualified borrowers by, among other things, submitting false loan applications, false bank statements, and false income documentation.
In total, the victim lenders funded more than $16 million in loans on properties that have since foreclosed or are in the stream of foreclosure.
Sentencing for Rafael Santiago, Abner Betech, Said Betech, and Aviva Betech is scheduled for April 13, 2009, and sentencing for Angel Armendariz is scheduled for April 20, 2009. A sixth defendant, Lucette Montane, remains at large and is actively being sought by federal authorities.
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