Stockton man sent to prison for mortgage fraud
November 10, 2017
• Gets three years and must repay $5 Million
• Ninth person sentenced in the scheme
Arthur Change Menefee, 46, of Stockton, has been sentenced to three years in prison and ordered to pay over $5 million in restitution for his part in a mortgage fraud scheme, says , U.S. Attorney Phillip Talbert.
According to court documents, Mr. Menefee was a licensed real estate agent who aided unqualified buyers in obtaining loans to purchase properties. Some of the properties were sold by co‑defendant Aleksandr Kovalev, who offered kickbacks to the buyers that were not disclosed to the lenders. Mr. Menefee assisted the buyers in preparing loan applications that included false information, and used fictitious companies he created to generate false information about the buyers’ employment and income to support the fraudulent loan applications. At least 23 properties were involved in his mortgage fraud scheme, with substantial losses to the lenders.
To date, co-defendants Aleksandr Kovalev, Jannice Riddick, Florence Francisco, Adil Qayyum, Elsie Pamela Fuller, and Leona Yeargin have pleaded guilty and been sentenced. Two others connected with the scheme, Valeriy Vasilevitsky and Ruth Willis, have also pleaded guilty and been sentenced with respect to their involvement in the scheme.