SAN DIEGO (CN) - Two more men pleaded guilty to committing mortgage fraud as part of a ring that used phony documents to get loans on $16 million worth of homes that are in foreclosure, federal prosecutors said. Five people have pleaded guilty and a sixth is a fugitive in the scam they ran as Creative Financial Solutions, a putative mortgage broker, at a Broadway address in San Diego.
Rafael Santiago, 39, of Los Angeles, and Angel Armendariz, 27, of Chula Vista, pleaded guilty Wednesday to conspiring to commit wire fraud. Abner Betech, 27, Said Betech, 32, and Aviva Betech, 29, all of San Diego, pleaded guilty on Nov. 13. Lucette Montane, 25, is at large.
Creative Financial Solutions did not fund mortgages, but submitted fraudulent applications to lenders who did. The five "loan officers" who pleaded guilty got commissions and kickbacks from the lenders."In total, the victim lenders funded more than $16 million in loans on properties that have been foreclosed or are in the foreclosure process," the U.S. Attorney's Office said.