SAN DIEGO -- The
FBI arrests two men wanted in connection with a nationwide mortgage fraud investigation -- but one South Bay woman remains on the loose.
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Angel Armendariz, 27, of
Chula Vista, and
Rafael Santiago, 39, of Riverside, were taken into custody on Tuesday. Agent Keith Slotter said Armendariz surrendered in
San Diego around 8:30 a.m. and Santiago was arrested in Los Angeles around 1:30 p.m. Both fugitives were arrested pursuant to a federal arrest warrant involving federal fraud charges.
The FBI is still asking the public's help to locate Lucette Montane, 25, of Chula Vista, in connection with the case.
The three are among six San Diego loan officers accused of wire fraud, according to U.S. Attorney Karen Hewitt. The others arrested in the local case are Abner Betech, 27; Said Betech, 32; and Aviva Betech, 29, all of San Diego. All six worked at Creative Financial Solutions, which started in 2005, and was located at 707 Broadway Ave. in San Diego.
Authorities allege the six devised a plan to "defraud and to obtain money and property by false and fraudulent means, related to mortgage fraud." Prosecutors say CFS did not fund loans, but instead "received commissions from the lenders when the loans closed… received payments from lenders, sellers, and buyers when loans closed."
The accused also allegedly obtained mortgage loans for unqualified or unknowing borrowers by "concealing the true purchase price of the homes by submitting false purchase contracts; submitting false loan applications; intentionally concealing the fair market value of the home; using misleading appraisals; and submitting false bank statements and income documentation."
As a result, lenders lost nearly $3.9 million, with potential losses in excess of $5.1 million, due to foreclosures, Hewitt said.
The case is part of a Department of Justice and Federal Bureau of Investigation nationwide operation entitled "Operation Malicious Mortgage." Others named in the cases include housing developers, mortgage lenders and brokers, lawyers, real estate agents and appraisers.
If convicted, they face a maximum of 20 years in prison.
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