Sacramento man sentenced for mortgage fraud scheme
June 15, 2017
• Gets over 7 years in prison
• Lenders lost millions
Sergey Shchirskiy, 41, of Sacramento, has been sentenced to seven years and 10 months in prison for his participation in two mortgage fraud schemes and one tax fraud scheme, according to U.S. Attorney Phillip Talbert.
Mr. Shchirskiy pleaded guilty to one count of wire fraud in each of the two mortgage fraud cases, as well as one count of conspiracy to defraud the United States and one count of aggravated identity theft in the third tax fraud case, according to court documents.
The plea agreement says Mr. Shchirskiy was a loan processor in one mortgage fraud scheme. Between April and November 2007, the co-conspirators used straw buyers to buy properties and then take out home equity lines of credit on the houses using fraudulent documents and statements. Mr. Shchirskiy helped to create the fraudulent supporting documents. All of the properties were foreclosed on, resulting in at least $1.5 million in losses to lenders.
According to the plea agreement in the second mortgage fraud scheme, in April 2007 Mr. Shchirskiy recruited straw buyers to purchase houses based on fraudulent loan applications. The applications lied about the buyer’s employment, income, assets, and intention to occupy the properties. The properties were foreclosed upon and resulted in a loss of more than $1.2 million to lenders.
In the tax fraud scheme, court records show that in March and April 2011, Mr. Shchirskiy conspired with others to obtain false tax refunds by submitting fraudulent claims using the identities of various individuals, at least eight of which were stolen. He claimed Earned Income Tax Credit based on false claims of employment from California’s In-Home Supportive Services program. Mr. Shchirskiy and his co-conspirators made approximately 80 attempts to file fraudulent tax returns, attempting to receive $661,286 in fraudulent returns from the Internal Revenue Service. The IRS ultimately issued approximately $88,728 in fraudulent refunds.