Sacramento real estate agent guilty of mortgage fraud

May 16, 2012 12:47pm
Comment Print Email

•  Jury finds him guilty on 13 counts

•  Scheme defrauded lenders of $1.3 Million

Behrooz Badie, 53, a Sacramento real estate agent, has been found guilty Wednesday of 13 counts of mail fraud following a six-day mortgage fraud trial in federal court, says U.S. Attorney Benjamin Wagner.

Mr. Badie, with co-defendants Derek Davis and Dino Rosetti (both of whom previously pleaded guilty), cooked up a scheme to defraud mortgage lenders and operated it for about 18 months before being caught, according to the evidence presented at trial.

Here’s how it worked, according to the U.S. Attorney’s Office:

Mr. Badie was the buyer’s real estate agent for the purchase of 16 residential properties by four straw buyers. Mr. Rosetti served as the mortgage broker for 15 of the purchasers, and Mr. Davis orchestrated the scheme.

With Mr. Badie’s assistance, Harriette Davis, Derek Davis’s ex-wife, purchased six homes. Kristina Harvey, Mr. Davis’s girlfriend, purchased five. William Emmons, an elderly friend of Mr. Davis, purchased four. Alan Bolton, a person to whom Mr. Davis owed money, bought one.

Each of the purchase agreements drafted by Mr. Badie indicated the offer was being submitted by one of the foregoing buyers who intended to occupy the property as his or her primary residence.

But that wasn’t part of the plan, testimony revealed.

Mr. Badie knew the properties were really being purchased by Mr. Davis, who planned to remodel the properties and then sell them. The individuals named on the purchase agreements, at least two of whom Mr. Badie never even met, never planned on living in the houses. Mr. Badie submitted the offers on behalf of the buyers so that 100 percent financing could be obtained for each purchase.

In furtherance of that goal, Mr. Rosetti submitted loan applications that, in every case, substantially overstated the income, and understated the liabilities of each buyer.

The purported prices on the purchase agreements drafted by Mr. Badie also overstated the true price of each property. These prices included not only the amount to be paid to the respective seller of the property, but also a substantial cash-back payment that would be made from the seller to Calorneva Land Company at the close of escrow ranging from $42,094 to $137,980. These payments were agreed to in addenda Mr. Badie drafted, indicating the payments to Calorneva were for repairs or improvements to the properties.

Although the purchase agreements were provided to the lenders and the appraiser with respect to each transaction, the addenda were not.

Upon acceptance of the offers, Mr. Badie would ask the listing agent to increase the publicly available Multiple Listing Service price for a particular property to the inflated purchase price in the agreement he drafted. This was done to make it appear as if Mr. Badie was simply submitting full-price offers, not offers well over the actual asking price. Thus, neither the lenders nor the appraiser were aware of the cash-back payments to Calorneva, or that the true market value of the properties in every case was considerably lower than that offered by Mr. Badie.

At the close of escrow, the difference between the inflated purchase price and the amounts the sellers were actually willing to accept for their properties was diverted to Calorneva.

In all, Calorneva received more than $1.3 million in such payments.

For his part, Mr. Badie received more than $260,000 in commissions.

Mr. Badie is scheduled to be sentenced by U. S. District Judge Edward Garcia on Aug. 28. He faces a maximum statutory penalty of 20 years in prison.

Comment Print Email

  • How to compete against Wal-Mart
  • Stockton mom turns a need into a business
  • The entrepreneur is in
  • Writing her own success story
  • Growing a small business the family way
  • The future pencils positive for this company
  • Niche marketing -- Italian style
  • Sipping success with niche marketing
  • Roasting a business out of his passion
  • Success as an independent consultant takes more than expertise
  • Avoiding the traps of employee law violations
  • Cracking the voice-over market
  • The American Dream realized, one package at a time
  • Female winemaker plunges into business
  • A new take on nurse education
  • Family sees moving business success
  • STEM thrives in pockets of education innovation
  • STEM goes solar in Stockton
  • Quick! There’s a robot in my pool
  • Retiring seniors can mean new business
  • Predawn biotech class trains next generation of science workers
  • Staying ahead of the competition the old fashioned way
  • Central Valley sees mismatch between high-tech jobs and job seekers
  • STEM starts young
  • Get ready – the future is here now
  • STEM Education: Growing the Valley's Future
  • They’re low power in wattage only, not ideas
  • Thinking success spawns Successful Thinkers
  • Small business success can mean finding the right niche
  • This franchise has real muscle behind it
  • Getting the scoop on small business success
  • Reshoring could rebuild America's manufacturing
  • Marketing that’s deliberately anchored to the past
  • Guitar artist plays his way to success
  • Paralysis no handicap for this entrepreneur
  • Boost sales with better communication
  • Making sandwiches sexy with a franchise
  • Going solar without spending a lot of money
  • They’re cute and cuddly. But are they a business?
  • Opportunity sails forth in the Delta
  • How bad etiquette on the job could kill your career
  • Growing their way out of hunger and poverty
  • Finding small business success from floor to ceiling
  • Why he’s public enemy #1 – for gophers
  • Running a home-based business successfully
  • Your boss needs a vacation – really
  • Couple makes transition from big corporations to small business
  • Carving a small business niche with a better idea
  • Calm is the goal of computer service and education franchisor
  • Developer squeezing new life into downtown with juice franchise
  • Signs of a recovering economy
  • How to keep a family business in the family
  • Ford dealership expands despite the Great Recession
  • Utility Telephone connects with customer service
  • Crowdfunding basics
  • The roar from crowdfunding is getting louder
  • California water wars’ bulldog
  • Water wars heat up in California
  • Helping businesses grow with a stronger STEM
  • How to retain your best employees
  • Small business runs success up the pole
  • Winery expands in Lodi
  • Lodi wineries tapping into growing Chinese market
  • Has the jobs picture brightened for the Valley for 2012?
  • The right education will be needed for 21st Century jobs
  • Where new jobs for San Joaquin will come from
  • Developing jobs for San Joaquin – Part 2
  • Developing jobs for San Joaquin
  • Fruits of his labor
  • Helping grow food security in the Valley of plenty
  • Doing a business turnaround despite the recession
  • Keeping customers loyal helps build her business
  • Expo exposes businesses to utility contracting ideas
  • Drink mix maker taps expertise to blend success
  • Entrepreneur finds success in a basket
  • Tips for catching resume fraud
  • There’s no checking out for this small business owner
  • Entrepreneurs take Valley sports play-by-play to the world
  • Starting a winery from scratch
  • Job hunting tips for the long-term unemployed
  • In the Central Valley, opera isn’t always the Grand Ole Opry
  • Branding ideas for small businesses
  • The ump’s not blind, but the players are
  • Finding success by tapping your brain in a new way - Part Two
  • Finding success by tapping your brain in a new way
  • Machines talking to machines is the future
  • Getting involved in the fight against AIDS
  • Franchised divorce says it’s a better way
  • Small business owner is brewing a success story
  • To beat the Great Recession, they’ve expanded
  • Taking a swing at strokes
  • Alert your taste buds – here comes Taste of San Joaquin
  • This franchise has real muscle behind it
  • Passion for his city drives him
  • Vicente Fox speaks out on U.S.-Mexico relations
  • Give your support staff recognition and reap top performance
  • Central Valley baker gets top honors for Royal Wedding pie
  • Asparagus Festival ends on high note
  • Stockton close to annual ‘tipping’ point
  • Framing small business success
  • Small business sees Affordable Care Act helping its bottom line
  • What you eat – and when – helps local restaurants
  • Coping with the aftermath of foreclosure
  • How to raise charming children
  • Central Valley grad school goes all-iPads
  • Solution to Delta water wars voiced
  • Making sure your personal bottom line is covered
  • Small California winemaker is all family
  • Small winery relies on family and innovation to compete
  • Central Valley company says it has a better way to store solar power
  • What’s wrong -- and right -- about local TV news
  • What planning means to small business success
  • Making the leap to small business
  • Out of work at middle age? Experts offer advice
  • Small business marketing, one article at a time
  • Congress on your corner as it’s supposed to be
  • Central Valley city’s heritage rediscovered
  • Central Valley school is building students’ foundations
  • Job tips from the expert
  • Long-term jobless worker re-invents himself
  • Building a new power plant means jobs for Central Valley
  • Sacramento reaches for the stars with new science center
  • Lodi Chamber opens China’s doors to small business
  • Writing books for fun – and sometimes profit
  • Black Friday shopping? How to protect yourself from scams
  • California winemakers can find added rewards overseas
  • Wine makers tap overseas markets from Lodi
  • A new revenue stream for Central Valley small businesses
  • Food bank seeks more business support
  • Tips for finding a job in the Great Recession
  • State may solve some of its prison woes with new Stockton facility
  • A solution to underwater mortgages
  • Should public libraries be managed by private firms?
  • Central Valley moves ahead with critical water project
  • Dee Dee Myers and the increasing impact of women on small business
  • How women are growing their small businesses
  • A market with a mission
  • Retailer 'paints' solutions to cash flow challenge
  • An answer for the unemployed – return to school
  • A ‘golden’ small business success story
  • Central Valley winegrapes blessed
  • Rubbing out the recession with a franchise
  • Surviving the recession as a small business
  • It’s personal, union says of Stockton fire cuts
  • How old it too old to start a new business?
  • They've found the recipe for small business success
  • MBA students help revive Central Valley farmers market
  • Classic wooden yachts anchor in Stockton for weekend
  • Foreclosures, short sales – a bank president comments
  • The strength of family helps this small business compete
  • Festival spears success in Central Valley
  • Social media helps keep family business prospering
  • Central Valley students get training in ‘green’ futures
  • Knives readied as Valley cities slash services
  • Central Valley jobless picture still grim
  • Delta residents told to ready for water war
  • Opportunities outlined for Central Valley small businesses
  • Rewiring your brain for success
  • Central Valley no longer ‘shell shocked’ by recession
  • To fix California’s government, look to London
  • Taking your sales pitch to the next level