Samuel Indictment

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Samuel Indictment Powered By Docstoc
					BENJAMIN B. WAGNER
United States Attorney                                                JUN 10 2010
PHILIP A. FERRARI
A s s i s t a n t U.S. A t t o r n e y
501 I S t r e e t , S t e 10-100
Sacramento, CA 95814
T e l e p h o n e ( 9 1 6 ) 554-2744




                        I N THE UNITED STATES DISTRICT COURT

                     FOR THE EASTERN DISTRICT OF CALIFORNIA



UNITED STATES OF AMERICA,

                        Plaintiff,
                                            VIOLATIONS: 18 U.S.C. §§ 3 7 1 ,
                v.                          1341, 1014 - C o n s p i r a c y t o
                                            Commit M a i l F r a u d a n d Make F a l s e
HODA SAMUEL,                                Statements i n Mortgage
CONNIE DEVERS,                              A p p l i c a t i o n s ; 18 U.S.C. § 1 3 4 1 -
CHARLES ROBERT MANESS,                      M a i l F r a u d (30 c o u n t s ) ; 18 U.S.C.
DANA FAULKNER,                              § 1014 - F a l s e S t a t e m e n t s i n
TRACY PAINTER,                              Mortgage A p p l i c a t i o n s (17
YGNACIA BRADFORD,                           c o u n t s ) ; 18 U.S.C. § 9 8 2 ( a ) ( 2 ) ( A )
SEAN PATRICK GJERDE,                        - Forfeiture Allegations
NICOLE DAWSON,
DANIEL HARRISON, a n d
RONALD BURRIS, JR.,

                        Defendants.



                                    I N D I C T M E N T

COUNT ONE: [18 U.S.C. §§ 3 7 1 , 1 3 4 1 , 1014 - C o n s p i r a c y To Commit
           M a i l F r a u d a n d Make F a l s e S t a t e m e n t s i n M o r t g a g e
           Applications]

        The Grand J u r y       charges:

                                       HODA SAMUEL,
                                      CONNIE DEVERS,
                                  CHARLES ROBERT MANESS,
                                      DANA FAULKNER,
                                      TRACY PAINTER,

                                              1
                                         YGNACIA BRADFORD,
                                       SEAN PATRICK GJERDE,
                                           NICOLE DAWSON,
                                       DANIEL HARRISON, and
                                        RONALD BURRIS, JR.,

defendants         h e r e i n , as f o l l o w s :

        1.       Beginning         no l a t e r t h a n o n o r a b o u t A p r i l 5, 2006, and

c o n t i n u i n g t o a t l e a s t on o r about February                 26, 2007, i n t h e

S t a t e a n d E a s t e r n D i s t r i c t o f C a l i f o r n i a and e l s e w h e r e , t h e

defendants         d i d knowingly          combine, c o n s p i r e and a g r e e w i t h each

o t h e r , a n d w i t h o t h e r s known and unknown t o t h e Grand J u r y , t o

commit o f f e n s e s a g a i n s t t h e U n i t e d S t a t e s o f A m e r i c a , t h a t i s :

m a i l f r a u d , i n v i o l a t i o n o f T i t l e 18, U n i t e d S t a t e s Code, S e c t i o n

1341;     and f a l s e statements              r e l a t i n g t o mortgage a p p l i c a t i o n s , i n

violation of T i t l e           18, U n i t e d S t a t e s Codes, S e c t i o n 1014.

A.      P a r t i e s , Relevant          Persons,      Entities

        At times m a t e r i a l t o t h i s indictment:

        2.        The f o l l o w i n g e n t i t i e s were f i n a n c i a l      institutions

whose a c c o u n t s     were i n s u r e d by t h e F e d e r a l D e p o s i t        Insurance

Corporation:             Long Beach M o r t g a g e ; GE Money Bank; a n d W a s h i n g t o n

Mutual       Bank ( c o l l e c t i v e l y ,   "financial         institutions").

        3.      The f o l l o w i n g e n t i t i e s were engaged i n t h e b u s i n e s s o f

mortgage l e n d i n g :          F i r s t F r a n k l i n F i n a n c i a l ; O p t i o n One M o r t g a g e

Corp.; Lime F i n a n c i a l S e r v i c e s ; A r g e n t M o r t g a g e Corp.; F i r s t NLC;

C a p i t a l Funding S o l u t i o n s , I n c . ; T r o j a n Lending            I n c . ; a n d New

Century       Mortgage Corp.              (collectively,          "mortgage l e n d e r s " ) .

        4.        The d e f e n d a n t    HODA SAMUEL was a l i c e n s e d r e a l e s t a t e

b r o k e r w i t h t h e C a l i f o r n i a Department o f Real E s t a t e .                She was

t h e owner a n d p r i n c i p a l o p e r a t o r o f L i b e r t y R e a l E s t a t e &

Investment          Company, a r e a l e s t a t e agency, w h i c h m a i n t a i n e d i t s

                                                        2
o f f i c e a t 3 1 4 1 D w i g h t Road, S u i t e 200, i n E l k Grove, C a l i f o r n i a .

D e f e n d a n t SAMUEL was a l s o t h e owner a n d p r i n c i p a l o p e r a t o r o f

L i b e r t y M o r t g a g e Company, a m o r t g a g e b r o k e r a g e b u s i n e s s , w h i c h

a l s o m a i n t a i n e d i t s o f f i c e a t 3 1 4 1 D w i g h t Road, S u i t e 200, i n E l k

Grove, C a l i f o r n i a .

         5.      The d e f e n d a n t CONNIE DEVERS was e m p l o y e d b y d e f e n d a n t

HODA SAMUEL a n d p e r f o r m e d t a s k s           f o r both L i b e r t y Real Estate                &

I n v e s t m e n t Company a n d L i b e r t y M o r t g a g e Company.                She was n o t

l i c e n s e d b y t h e C a l i f o r n i a Department o f Real E s t a t e .                  Her d u t i e s

included,        among o t h e r t h i n g s , s h o w i n g p r o p e r t i e s t o p r o s p e c t i v e

buyers and p r e p a r i n g         U n i f o r m R e s i d e n t i a l Loan A p p l i c a t i o n s      (Form

1003) .

         6.      The d e f e n d a n t CHARLES ROBERT MANESS was a l i c e n s e d                           real

estate broker            w i t h t h e C a l i f o r n i a Department o f Real E s t a t e .                 He

was e m p l o y e d a s a l o a n o f f i c e r w i t h L i b e r t y M o r t g a g e Company, a n d

was a d d i t i o n a l l y r e s p o n s i b l e   f o r t r a i n i n g and s u p e r v i s i n g L i b e r t y

M o r t g a g e Company employees.

         7.       The d e f e n d a n t DANA FAULKNER was e m p l o y e d b y d e f e n d a n t

HODA SAMUEL a n d p e r f o r m e d t a s k s            f o r both L i b e r t y Real Estate               &

I n v e s t m e n t Company a n d L i b e r t y M o r t g a g e Company.                She was n o t

l i c e n s e d b y t h e C a l i f o r n i a Department o f Real E s t a t e .                  Her d u t i e s

included,         among o t h e r t h i n g s , s h o w i n g p r o p e r t i e s t o p r o s p e c t i v e

buyers and p r e p a r i n g          U n i f o r m R e s i d e n t i a l Loan A p p l i c a t i o n s .

         8.       The d e f e n d a n t TRACY PAINTER was e m p l o y e d b y L i b e r t y

M o r t g a g e Company.          I n a d d i t i o n , she p u r c h a s e d a r e s i d e n t i a l

property u t i l i z i n g        t h e s e r v i c e s o f L i b e r t y Real Estate            &

I n v e s t m e n t Company a n d L i b e r t y M o r t g a g e Company.

         9.       The d e f e n d a n t YGNACIA BRADFORD was t h e owner o f t h e

                                                         3
O a k l a n d Y o u t h Success C e n t e r , a n o n - p r o f i t      e n t i t y t h a t h a d no

employees a n d was n o n - o p e r a t i o n a l .            I naddition,        she p u r c h a s e d a

residential property u t i l i z i n g              the services of Liberty                   Real

E s t a t e & I n v e s t m e n t Company and L i b e r t y M o r t g a g e Company.

        10.     The d e f e n d a n t SEAN PATRICK GJERDE was a n a t t o r n e y ,

licensed      w i t h t h e C a l i f o r n i a S t a t e Bar.        He m a i n t a i n e d a n o f f i c e

a t 8880 E l k G r o v e B o u l e v a r d , S u i t e A, i n E l k Grove, C a l i f o r n i a ,

where he, among o t h e r t h i n g s ,           provided t a x consulting                  services

including the preparation                  o f income t a x r e t u r n s .

        11.     The d e f e n d a n t NICOLE DAWSON p u r c h a s e d t w o r e s i d e n t i a l

properties        utilizing        t h e s e r v i c e s o f L i b e r t y Real E s t a t e &

I n v e s t m e n t Company a n d L i b e r t y M o r t g a g e Company.

        12.     The d e f e n d a n t DANIEL HARRISON p u r c h a s e d t w o r e s i d e n t i a l

properties        utilizing        t h e s e r v i c e s o f L i b e r t y Real E s t a t e &

I n v e s t m e n t Company a n d L i b e r t y M o r t g a g e Company.

        13.     The d e f e n d a n t RONALD BURRIS, JR. p u r c h a s e d                 three

residential properties                utilizing             the services of Liberty               Real

E s t a t e & I n v e s t m e n t Company a n d L i b e r t y M o r t g a g e Company.

B.      The O b j e c t s Of The C o n s p i r a c y

        The    objects      o f t h e c o n s p i r a c y , among o t h e r s ,      were as

follows:

        14.     The d e f e n d a n t s s o u g h t t o a n d d i d p u r c h a s e r e a l

properties        and induce f e d e r a l l y i n s u r e d f i n a n c i a l i n s t i t u t i o n s

and   m o r t g a g e companies t o f u n d m o r t g a g e s o n r e s i d e n t i a l

properties        by submitting           m a t e r i a l l y f a l s e and f r a u d u l e n t   loan

applications,          and by t a k i n g o t h e r m a t e r i a l      acts that          fraudulently

o v e r s t a t e d t h e buyers' assets and a b i l i t y              t o make f u t u r e      loan

p a y m e n t s , as w e l l as o v e r s t a t i n g       the value of the r e s i d e n t i a l

                                                        4
properties.           The d e f e n d a n t s s o u g h t t o a n d d i d e n r i c h    themselves

e i t h e r by r e c e i p t   of substantial           commissions/revenues a s s o c i a t e d

w i t h these r e a l e s t a t e and l o a n t r a n s a c t i o n s and/or r e c e i p t o f

substantial         n o n - d i s c l o s e d payments a t t h e c l o s e o f e s c r o w o f t h e

transactions.             Of t h e t h i r t y r e s i d e n t i a l p r o p e r t y   transactions

t h a t a r e t h e r e s u l t o f t h i s c o n d u c t , a t l e a s t t w e n t y - e i g h t have

gone i n t o f o r e c l o s u r e , r e s u l t i n g i n a l o s s t o l e n d e r s i n e x c e s s

of    a p p r o x i m a t e l y $5,500,000.

C.       The Manner A n d Means Of The C o n s p i r a c y

         The manner a n d means o f t h e c o n s p i r a c y w e r e , i n s u b s t a n c e ,

as     follows:

         15.     Between i n o r a b o u t A p r i l o f 2006 a n d i n o r a b o u t

F e b r u a r y o f 2007, d e f e n d a n t HODA SAMUEL a n d c e r t a i n              defendants

who were e m p l o y e e s o f L i b e r t y R e a l E s t a t e & I n v e s t m e n t Company

and    L i b e r t y M o r t g a g e Company were i n s t r u m e n t a l i n e f f e c t u a t i n g

the purchases o f t h e f o l l o w i n g r e s i d e n t i a l r e a l p r o p e r t i e s i n

v a r i o u s communities i n t h e State and Eastern D i s t r i c t o f

California:

     C l o s i n g Date    Property Description                                         Purchaser
      04/12/06             168 C r e e k s i d e C i r c l e ,                          YGNACIA
                           Sacramento, C a l i f o r n i a                              BRADFORD
      04/18/06             50 Quasar C i r c l e ,                                      K.C.
                           Sacramento, C a l i f o r n i a
      05/12/06             2309 West B u r t o n Way,                                   TRACY
                           Lodi, California                                             PAINTER
      05/12/06             2337 F r u i t r i d g e Road,                               J.K.
                           Sacramento, C a l i f o r n i a
      05/19/06             3 0 Quasar C i r c l e ,                                     J.K.
                           Sacramento, C a l i f o r n i a
      06/09/06              2305 John S t i l l D r i v e ,                             R.S.
                            Sacramento, C a l i f o r n i a


                                                        5
06/15/06   5 94 3 C l o v e r Manor Way,              RONALD
           Sacramento, C a l i f o r n i a            BURRIS, JR
06/22/06   5 941 C l o v e r Manor Way,               RONALD
           Sacramento, C a l i f o r n i a            BURRIS, JR
06/22/06   5 94 5 C l o v e r Manor Way,              A.D.
           Sacramento, C a l i f o r n i a
06/22/06   594 7 C l o v e r Manor Way,               A.D.
           Sacramento, C a l i f o r n i a
06/30/06   10024 Shana Way,                           RONALD
           E l k Grove, C a l i f o r n i a           BURRIS, JR
07/20/06   1316 Y o s e m i t e C i r c l e ,         NICOLE
           Oakley, C a l i f o r n i a                DAWSON
08/24/06   9563 T a r b e r t D r i v e ,             H.M.
           Sacramento, C a l i f o r n i a
08/29/06   8633 P r a i r i e w o o d s D r i v e ,   NICOLE
           Sacramento, C a l i f o r n i a            DAWSON
08/31/06   341-45 Las Palmas,                         A.W.
           Sacramento, C a l i f o r n i a
09/08/06   2 92 8 Babson D r i v e ,                  A.W.
           E l k Grove, C a l i f o r n i a
09/11/06   197 S t a n f o r d Avenue,                C.D.
           Sacramento, C a l i f o r n i a
09/28/06   9720 C a r i a n n C o u r t ,             A.C.
           E l k Grove, C a l i f o r n i a
10/20/06   2304 E v e r g r e e n S t r e e t ,       DANIEL
           Sacramento, C a l i f o r n i a            HARRISON
10/26/06   130 G r o t h C i r c l e ,                C.S.
           Sacramento, C a l i f o r n i a
10/27/06   4515 5 4 t h S t r e e t ,                 C.S.
           Sacramento, C a l i f o r n i a
11/08/06   8474 S u n b l a z e Way,                  T.J.
           Sacramento, C a l i f o r n i a
11/28/06   74 81 Cosgrove Way,                        DANIEL
           Sacramento, C a l i f o r n i a            HARRISON
12/08/06   2930 B r a n c h S t r e e t ,             D.J.
           Sacramento, C a l i f o r n i a
12/15/06   5831 7 9 t h S t r e e t ,                 J.L.
           Sacramento, C a l i f o r n i a




                                      6
     01/03/07             5732 R i v e r s i d e D r i v e ,                            D.J.
                          Olivehurst, California
     01/17/07             13 B r i a r Creek C o u r t ,                                R.W.
                          Sacramento, C a l i f o r n i a
     01/25/07             57 05 Palm Avenue,                                            K.C.
                          Sacramento, C a l i f o r n i a
     02/23/07             1064 Roanoke Avenue,                                          K.C.
                          Sacramento, C a l i f o r n i a
     02/26/07             2012 J u l i e s s e Avenue,                                  L.B.
                          Sacramento, C a l i f o r n i a


        16.      I n a l l t h i r t y of the transactions                  t h a t were p a r t o f t h e

conspiracy         (the " r e a l property           t r a n s a c t i o n s " ) , d e f e n d a n t HODA

SAMUEL s e r v e d a s t h e r e a l e s t a t e a g e n t f o r t h e p r o p e r t y

purchaser.          I n approximately f i f t e e n o f the t h i r t y                  transactions,

d e f e n d a n t HODA SAMUEL s e r v e d as t h e r e a l e s t a t e            agent f o r t h e

property       seller.        I n a t least twenty-nine o f t h e transactions,

d e f e n d a n t HODA SAMUEL'S company, L i b e r t y M o r t g a g e Company, s e r v e d

as    t h e mortgage b r o k e r t h a t secured f i n a n c i n g f o r t h e purchaser.

        17.       Approximately twenty-six                   o f the t h i r t y       transactions

were a c c o m p l i s h e d t h r o u g h t h e o b t a i n i n g o f t w o m o r t g a g e l o a n s

( s o - c a l l e d "80/20 f i n a n c i n g " )    that financed          100% o f t h e p u r p o r t e d

purchase p r i c e .        As p a r t o f t h e m o r t g a g e l o a n a p p l i c a t i o n

p r o c e s s , b o r r o w e r s a n d / o r t h e i r b r o k e r s were r e q u i r e d t o c o m p l e t e

f o r m s s u c h as a U n i f o r m R e s i d e n t i a l Loan A p p l i c a t i o n , a Request

for    V e r i f i c a t i o n o f Employment, a Request f o r V e r i f i c a t i o n o f

Rent, a n d t o p r o v i d e       c o p i e s o f p a y r o l l check s t u b s ,      IRS Forms W-

2,    U.S. I n d i v i d u a l Income Tax R e t u r n s , a n d a n y o t h e r              information

as    required by t h e lenders.                   These c o m p l e t e d f o r m s were         submitted

by    t h e b o r r o w e r , o r sometimes t h e b o r r o w e r ' s e m p l o y e r a n d t h e

b o r r o w e r ' s a c c o u n t a n t , t o t h e m o r t g a g e l o a n o f f i c e r who, i n t u r n ,

                                                       7
 1   c o n v e y e d them t o t h e t o t h e l e n d e r        f o r r e v i e w and      approval.

 2            18.       C e r t a i n defendants knowingly submitted                       a n d caused t o

 3   be s u b m i t t e d    f a l s e and f r a u d u l e n t   information t o the financial

 4   i n s t i t u t i o n s and o t h e r mortgage l e n d e r s        t o f r a u d u l e n t l y procure

 5   mortgage f i n a n c i n g f o r t h e r e a l p r o p e r t y        transactions.                This

 6   f a l s e and f r a u d u l e n t    information included,               among o t h e r      things,

 7   the purchaser's:                o c c u p a t i o n a n d p l a c e o f employment, income,

 8   p r i o r r e n t a l h i s t o r y , a s s e t s and o t h e r p r o p e r t y    owned,

 9   and    i n t e n t t o occupy t h e p r o p e r t y .

10            19.      As p a r t o f t h e m o r t g a g e l o a n a p p l i c a t i o n p r o c e s s ,

11   f i n a n c i a l i n s t i t u t i o n s and mortgage l e n d e r s       w o u l d sometimes make

12   contact        w i t h p e r s o n s l i s t e d as e m p l o y e r s , l a n d l o r d s , and

13   a c c o u n t a n t s , t o v e r i f y employment, income a n d r e n t a l h i s t o r y as

14   s e t f o r t h i n t h e mortgage l o a n a p p l i c a t i o n m a t e r i a l s .           Certain

15   defendants knowingly provided,                        a n d c a u s e d t o be p r o v i d e d ,     false

16   "verifications"              of this       information.

17            20.      D u r i n g t h e eleven-month p e r i o d r e l e v a n t t o t h i s

18   Indictment,            d e f e n d a n t HODA SAMUEL a n d h e r company, L i b e r t y R e a l

19   Estate       & I n v e s t m e n t Company, r e p r e s e n t e d n i n e i n d i v i d u a l s who

20   p u r c h a s e d more t h a n one r e s i d e n t i a l p r o p e r t y .        Two o f t h e s e

21   i n d i v i d u a l s each purchased t h r e e r e s i d e n t i a l p r o p e r t i e s over             this

22   time period.             As p a r t o f t h e i r e f f o r t s t o f r a u d u l e n t l y p r o c u r e

23   mortgage f i n a n c i n g and t o conceal t h e f a c t t h a t a s i n g l e

24   i n d i v i d u a l was m a k i n g more t h a n one p u r c h a s e , c e r t a i n d e f e n d a n t s

25   arranged f o r t h e c l o s i n g s o f p r o p e r t i e s purchased by a s i n g l e

26   i n d i v i d u a l t o be s c h e d u l e d i n c l o s e p r o x i m i t y t o e a c h o t h e r a n d

27   engaged t h e s e r v i c e s         o f separate t i t l e       companies a n d m o r t g a g e

28   lenders.          I n a d d i t i o n , c e r t a i n defendants f a i l e d t o reveal t o t h e

                                                             8
 1   m o r t g a g e l e n d e r s t h e f a c t t h a t a p u r c h a s e r was a p p l y i n g f o r o r

 2   had   already received financing                       t o make a s e p a r a t e r e s i d e n t i a l

 3   home p u r c h a s e , a n d o m i t t e d t h a t i n f o r m a t i o n     on t h e Uniform

 4   Residential         Home A p p l i c a t i o n s     which r e q u i r e d   t h e purchasers t o

 5   disclose       liabilities         and a l l r e a l estate             owned.       Finally, despite

 6   the   fact that multiple               i n d i v i d u a l s p u r c h a s e d more t h a n one

 7   r e s i d e n t i a l property w i t h i n a short            time period,         o n each s u c h

 8   Uniform Residential               Loan A p p l i c a t i o n ,    i t was i n d i c a t e d   that the

 9 p u r c h a s e r would occupy t h e purchased p r o p e r t y as h i s o r h e r

10   primary residence.

11           21.     As t h e r e a l e s t a t e        agent r e p r e s e n t i n g t h e purchasers o f

12   the   residential properties,                      d e f e n d a n t HODA SAMUEL a n d L i b e r t y

13   R e a l E s t a t e & I n v e s t m e n t Company p r e p a r e d a n d c a u s e d t o be

14   prepared C a l i f o r n i a Residential                Purchase Agreement a n d J o i n t

15   Escrow I n s t r u c t i o n f o r m s , w h i c h i n c l u d e d     t h e purchaser's         offered

16   purchase p r i c e .         I n approximately twenty-nine o f the t h i r t y

17   transactions,          t h e p r o f f e r e d purchase p r i c e exceeded t h e s e l l e r ' s

18   asking price.            D e f e n d a n t HODA SAMUEL a n d L i b e r t y R e a l E s t a t e &

19   I n v e s t m e n t Company t h e n c a u s e d t h e d i f f e r e n c e      between t h e

20   purchase p r i c e and t h e a c t u a l              asking p r i c e , which ranged from

21   $15,000 t o $45,000, t o be d i v e r t e d a t t h e c l o s e o f e s c r o w f r o m

22   the   s e l l e r t oeither:           t h e purchaser, f r i e n d s and f a m i l y o f t h e

23   p u r c h a s e r , o r p r i o r p u r c h a s e r s who h a d n o t y e t r e c e i v e d a

24   m o n e t a r y payment.

25           22.      To h e l p a c c o m p l i s h t h i s d i v e r s i o n    o f funds,       defendant

26   HODA SAMUEL a n d L i b e r t y R e a l E s t a t e & I n v e s t m e n t Company

27   frequently        p r e p a r e d a n d caused t o be p r e p a r e d a n addendum t o t h e

28   Residential         P u r c h a s e Agreement w h i c h c a l l e d f o r t h e d i f f e r e n c e

                                                              9
 1   between t h e purchase             p r i c e a n d t h e a c t u a l a s k i n g p r i c e t o be p a i d

 2   f r o m t h e s e l l e r t o a t h i r d p a r t y a t t h e c l o s e o f escrow.              These

 3   addenda, a t t i m e s , f a l s e l y s t a t e d t h a t t h e f u n d s were t o be u s e d

 4   f o r r e p a i r s t o t h e p r o p e r t i e s , and f r e q u e n t l y s t a t e d t h a t t h e

 5   r e p a i r s i n q u e s t i o n were n e c e s s a r y   t o make t h e r e s i d e n c e

 6   c o m p l i a n t w i t h t h e "ADA," o r A m e r i c a n s w i t h D i s a b i l i t i e s A c t .       In

 7   f a c t , o n many o c c a s i o n s p u r c h a s e r s who r e c e i v e d t h e s e k i c k b a c k s

 8   u s e d t h e money f o r p u r p o s e s       o t h e r t h a n t h e making o f r e p a i r s .

 9   M o r e o v e r , i n most i n s t a n c e s no r e p a i r s were e f f e c t e d t o r e n d e r a

10   p r o p e r t y c o m p l i a n t w i t h t h e Americans w i t h D i s a b i l i t i e s A c t .

11           23.       To h e l p a c c o m p l i s h t h e d i v e r s i o n o f f u n d s ,   certain

12   d e f e n d a n t s f r e q u e n t l y p r e p a r e d a n d caused t o be p r e p a r e d     invoices

13   f o r r e p a i r s a n d o t h e r w o r k p u r p o r t e d l y done o n t h e p r o p e r t i e s .

14   I n a l m o s t e v e r y i n s t a n c e , t h e s e i n v o i c e s were f r a u d u l e n t , i n t h a t

15   t h e y p u r p o r t e d t o i s s u e f r o m companies t h a t d i d n o t e x i s t f o r

16   w o r k t h a t was n o t p e r f o r m e d .      I n almost every i n s t a n c e , c e r t a i n

17   defendants ensured              t h a t c o p i e s o f t h e addenda and t h e i n v o i c e s

18   were t r a n s m i t t e d t o t h e t i t l e     company a d m i n i s t e r i n g t h e c l o s e o f

19   escrow t o ensure           t h a t d e f e n d a n t s r e c e i v e d payment o f f u n d s f r o m

20   escrow.

21           24.     A l t h o u g h t h e C a l i f o r n i a R e s i d e n t i a l P u r c h a s e Agreement

22   i n c l u d e s a b o x w h i c h c a n be c h e c k e d    i f t h e r e a r e addenda t o t h e

23   Agreement, a n d a l t h o u g h d e f e n d a n t HODA SAMUEL a n d L i b e r t y               Real

24   E s t a t e & I n v e s t m e n t Company p r e p a r e d and c a u s e d t o be p r e p a r e d

25   b o t h t h e P u r c h a s e Agreements a n d t h e addenda, o f t e n

26   s i m u l t a n e o u s l y , t h e P u r c h a s e Agreements n e v e r i n d i c a t e d t h e r e

27   were addenda.            A l t h o u g h i n e v e r y i n s t a n c e t h e P u r c h a s e Agreements

28   were p r o v i d e d t o t h e f i n a n c i a l i n s t i t u t i o n s a n d o t h e r m o r t g a g e

                                                           10
 1   l e n d e r s , d e f e n d a n t HODA SAMUEL a n d L i b e r t y R e a l E s t a t e &

 2   I n v e s t m e n t Company f r e q u e n t l y w i t h h e l d t h e addenda r e f l e c t i n g t h e

 3   d i v e r s i o n o f f u n d s a t t h e c l o s e o f escrow, t h e r e b y c o n c e a l i n g t h e

 4   t r u e purchase        p r i c e and d i v e r s i o n o f funds from l e n d e r s .

 5           25.       A l t h o u g h i n e v e r y i n s t a n c e t h e P u r c h a s e Agreements

 6 were p r o v i d e d t o t h e a p p r a i s e r who was p e r f o r m i n g a n e v a l u a t i o n

 7 o f t h e p r o p e r t y f o r t h e m o r t g a g e l e n d e r , d e f e n d a n t HODA SAMUEL

 8 and L i b e r t y R e a l E s t a t e & I n v e s t m e n t Company f r e q u e n t l y            withheld

 9   t h e addenda f r o m t h e a p p r a i s e r .          T h i s was done t o c o n c e a l t h e

10   t r u e purchase        p r i c e and d i v e r s i o n o f funds from t h e a p p r a i s e r ,

11   and t h u s , i n t u r n ,      f r o m t h e mortgage l e n d e r .

12           26.      To h e l p a c c o m p l i s h t h e d i v e r s i o n o f f u n d s ,     certain

13   defendants assured t h e p r o p e r t y s e l l e r s and t h e i r agents t h a t t h e

14   f u n d s w o u l d be u s e d t o make needed r e p a i r s t o t h e p r o p e r t y .                In

15   many i n s t a n c e s , t h e d e f e n d a n t s m i s r e p r e s e n t e d t h a t t h e p u r c h a s e r ,

16   and members o f t h e p u r c h a s e r ' s f a m i l y , s u f f e r e d f r o m a d i s a b i l i t y

17   and t h u s n e e d e d t h e f u n d s t o r e n d e r t h e p r o p e r t y c o m p l i a n t w i t h

18   the Americans w i t h D i s a b i l i t y A c t .             On more t h a n one o c c a s i o n ,

19   t h e defendants m i s r e p r e s e n t e d t h a t t h e mortgage l e n d e r i n

20   q u e s t i o n was aware o f t h e payment, a n d e v e n t h a t t h e l e n d e r i n

21   q u e s t i o n had a s p e c i a l program           a l l o w i n g t h e disbursement          o f funds

22   t o b e u s e d o n p r o j e c t s r e n d e r i n g r e s i d e n t i a l p r o p e r t i e s ADA

23   compliant.

24            27.     As p a r t o f t h e c o n s p i r a c y , d e f e n d a n t HODA SAMUEL a n d

25   L i b e r t y R e a l E s t a t e & I n v e s t m e n t Company o b t a i n e d c o m m i s s i o n s a n d

26   fees i n connection w i t h t h e f r a u d u l e n t l y procured loans.

27            28.     As p a r t o f t h e c o n s p i r a c y , d e f e n d a n t HODA SAMUEL a n d

28   L i b e r t y M o r t g a g e Company o b t a i n e d l o a n c l o s i n g f e e s a n d m o r t g a g e

                                                            11
brokerage fees from various lenders i n connection w i t h t h e

fraudulently procured                  loans.

          29.     As p a r t    o f t h e c o n s p i r a c y , c e r t a i n d e f e n d a n t s who made

f a l s e r e p r e s e n t a t i o n s t o mortgage l e n d e r s and escrow o f f i c e r s on

b e h a l f o f p u r c h a s e r s r e c e i v e d payments f r o m L i b e r t y R e a l E s t a t e &

I n v e s t m e n t Company a n d L i b e r t y M o r t g a g e Company f o r d o i n g s o .

          30.     As p a r t    o f t h e c o n s p i r a c y , c e r t a i n d e f e n d a n t s who

purchased p r o p e r t i e s        r e c e i v e d payments a t t h e c l o s e o f escrow,

which represented t h ed i f f e r e n c e               between t h e i n f l a t e d        purchase

price      and t h e a c t u a l     asking      price.

     D.           O v e r t A c t s I n F u r t h e r a n c e Of The C o n s p i r a c y

          I n f u r t h e r a n c e o f t h e conspiracy and t o accomplish i t s

objects,         t h e d e f e n d a n t s , a n d o t h e r s known a n d unknown t o t h e

Grand J u r y , c o m m i t t e d a n d c a u s e d t o be c o m m i t t e d t h e f o l l o w i n g

overt      acts,      among o t h e r s ,    w i t h i n theEastern D i s t r i c t o f

California,           and elsewhere:

          31.     On o r a b o u t A p r i l 5, 2006, d e f e n d a n t CONNIE DEVERS

p a r t i c i p a t e d i nthepreparation               o f a false Uniform               Residential

Loan A p p l i c a t i o n     f o r use i n t h e f i n a n c i n g     o f d e f e n d a n t YGNACIA

BRADFORD'S p u r c h a s e o f 165 C r e e k s i d e C i r c l e .              The a p p l i c a t i o n

f a l s e l y and f r a u d u l e n t l y   stated,       among o t h e r t h i n g s ,      that

d e f e n d a n t BRADFORD r e c e i v e d $650 a month i n r e n t a l income.

          32.      On o r a b o u t A p r i l    1 1 , 2006, d e f e n d a n t CONNIE DEVERS

p a r t i c i p a t e d i n thepreparation              o f a false Uniform               Residential

Loan A p p l i c a t i o n     f o r use i n t h e f i n a n c i n g     o f K.C.'s p u r c h a s e o f

50   Quasar C i r c l e .         The a p p l i c a t i o n   f a l s e l y and f r a u d u l e n t l y

stated,         among o t h e r t h i n g s ,    t h a t K.C. was e m p l o y e d b y D e v e r s

Security         a n d was p a i d     $1,500 a month f o r t h a t              position.

                                                        12
        33.     On o r a b o u t May 3, 2006, d e f e n d a n t DANA FAULKNER

p r o v i d e d a f a l s e v e r i f i c a t i o n t o a Long Beach M o r t g a g e Company

employee i n d i c a t i n g t h a t J.K. h a d r e n t e d t h e p r o p e r t y a t 68 83

Romanzo Way, E l k Grove, s i n c e J a n u a r y o f 2003.                        T h i s was done i n

c o n n e c t i o n w i t h J.K's p u r c h a s e o f t h e r e s i d e n c e a t 2237

F r u i t r i d g e Road.

        34.     On o r a b o u t May 8, 2006, d e f e n d a n t TRACY PAINTER

s i g n e d , a n d d e f e n d a n t CONNIE DEVERS p a r t i c i p a t e d i n t h e

preparation         o f , a f a l s e Uniform Residential                    Loan A p p l i c a t i o n f o r

use i n t h e f i n a n c i n g     o f d e f e n d a n t PAINTER'S p u r c h a s e o f 2309 West

B u r t o n Way.      The a p p l i c a t i o n    f a l s e l y and f r a u d u l e n t l y   stated,

among o t h e r t h i n g s ,     t h a t d e f e n d a n t PAINTER h a d a s e c o n d j o b as a

g u i d a n c e c o u n s e l o r f o r t h e O a k l a n d Y o u t h Success C e n t e r a n d was

paid    $1,684 a m o n t h f o r t h a t p o s i t i o n , a n d t h a t she a d d i t i o n a l l y

r e c e i v e d o v e r $1,000 a month f r o m               renters.

        35.      On o r a b o u t June 3, 2006, d e f e n d a n t DANA FAULKNER

p a r t i c i p a t e d i n the preparation             o f a false Uniform               Residential

Loan A p p l i c a t i o n    f o r use i n t h e f i n a n c i n g      o f R.S.'s p u r c h a s e o f

23 05 J o h n S t i l l      Drive.      The a p p l i c a t i o n f a l s e l y a n d f r a u d u l e n t l y

stated,       among o t h e r t h i n g s ,       t h a t R.S. was e m p l o y e d as a n

Expediter Director               f o r t h e Y o u t h Success C e n t e r a n d h e r g r o s s

income was $5,16 6 p e r month.

        36.      On o r a b o u t June 7, 2006, d e f e n d a n t YGNACIA BRADFORD

p r o v i d e d a f a l s e v e r i f i c a t i o n t o a n A r g e n t M o r t g a g e employee

i n d i c a t i n g t h a t A.D. h a d been employed as a c o u n s e l o r b y t h e

O a k l a n d Y o u t h Success C e n t e r s i n c e 2004.              T h i s was done i n

c o n n e c t i o n w i t h A.D.'s p u r c h a s e o f t h e r e s i d e n c e a t 5947 C l o v e r

Manor Way.

                                                        13
        37.     On o r a b o u t June 6, 2006, d e f e n d a n t DANA FAULKNER

provided a false v e r i f i c a t i o n           t o a Long Beach M o r t g a g e employee

i n d i c a t i n g t h a t d e f e n d a n t RONALD BURRIS, JR. h a d r e n t e d a

p r o p e r t y f r o m h e r s i n c e F e b r u a r y o f 2003.         T h i s was done i n

c o n n e c t i o n w i t h d e f e n d a n t BURRIS' p u r c h a s e     o f t h e residence a t

5 94 3 C l o v e r Manor Way.

        38.     On o r a b o u t June 9, 2006, d e f e n d a n t RONALD BURRIS, JR.

signed a f a l s e Uniform Residential                       Loan A p p l i c a t i o n    f o r use i n

the    financing       o f h i s purchase          o f 5943 C l o v e r Manor Way. The

application         f a l s e l y and f r a u d u l e n t l y s t a t e d ,   among o t h e r t h i n g s ,

t h a t d e f e n d a n t BURRIS e a r n e d $7,000 a month as t h e owner o f PAK

Entertainment.

        39.     On o r a b o u t June 20, 2006, d e f e n d a n t CONNIE DEVERS

transferred         a p p r o x i m a t e l y $6,000 f r o m h e r Bank o f A m e r i c a s a v i n g s

account       (no. XXXXXX6888) i n t o d e f e n d a n t RONALD BURRIS, JR.'s Bank

of America checking account                     (no. XXXXXX0183).                T h i s was done i n

c o n n e c t i o n w i t h d e f e n d a n t BURRIS' p u r c h a s e     o f the residence a t

10024 Shana Way a n d i n a n t i c i p a t i o n o f a r e q u e s t f o r v e r i f i c a t i o n

of d e p o s i t by t h e proposed            lender, F i r s t        Franklin           Financial.

        40.     On o r a b o u t June 28, 2006, d e f e n d a n t s YGNACIA BRADFORD

and NICOLE DAWSON b o t h p r o v i d e d f a l s e a n d f r a u d u l e n t                verbal

verification         o f d e f e n d a n t RONALD BURRIS JR.'s employment t o a

First     Franklin       Financial         employee.          T h i s was done i n c o n n e c t i o n

w i t h d e f e n d a n t BURRIS' p u r c h a s e      o f t h e r e s i d e n c e a t 10024 Shana

Way.

        41.     On o r a b o u t J u l y      6, 2006, d e f e n d a n t CHARLES ROBERT

MANESS p r o v i d e d a f a l s e a s s u r a n c e        t o t h e l i s t i n g agent t h a t t h e

purchase       b y d e f e n d a n t NICOLE DAWSON o f t h e r e s i d e n c e a t 1316

                                                       14
Y o s e m i t e C i r c l e was b e i n g f i n a n c e d    pursuant t o a special                program

w h i c h made a l l o w a n c e s f o r d i s a b l e d     p e r s o n s t o make i m p r o v e m e n t s

to    their     properties.

        42.      On o r a b o u t J u l y 13, 2006, d e f e n d a n t CONNIE DEVERS

participated i n the preparation                        o f a f a l s e Uniform          Residential

Loan A p p l i c a t i o n f o r use i n t h e f i n a n c i n g o f H.M.'s p u r c h a s e o f

9563 T a r b e r t     Drive.        The a p p l i c a t i o n f a l s e l y a n d f r a u d u l e n t l y

stated,        among o t h e r     things,       t h a t H.M. was e m p l o y e d as a S i t e

Manager f o r W h i t e E n t e r p r i s e        a n d was p a i d      $11,545 a month f o r

that position.

        43.      On o r a b o u t J u l y 14, 2006, d e f e n d a n t NICOLE DAWSON

signed a f a l s e Uniform Residential                        Loan A p p l i c a t i o n f o r u s e i n

the    f i n a n c i n g o f h e r p u r c h a s e o f 1316 Y o s e m i t e C i r c l e . The

a p p l i c a t i o n f a l s e l y and f r a u d u l e n t l y s t a t e d ,   among o t h e r    things,

t h a t d e f e n d a n t DAWSON was employed as a D i r e c t o r o f M a r k e t i n g b y

Edwards, H e n r y a n d A s s o c i a t e s a n d was p a i d              $11,500 a month f o r

that position.

        44.      On o r a b o u t A u g u s t 14, 2006, d e f e n d a n t CONNIE DEVERS

participated i n the preparation                        o f a f a l s e Uniform          Residential

Loan A p p l i c a t i o n    f o r use i n t h e f i n a n c i n g o f A.W.'s p u r c h a s e o f

2928 Babson D r i v e .            The a p p l i c a t i o n f a l s e l y a n d f r a u d u l e n t l y

stated,        among o t h e r      things,       t h a t A.W. was e m p l o y e d as a Web

D e s i g n e r b y B l a c k H o l l y w o o d N e t w o r k , a n d t h a t he was p a i d         $8,620

a m o n t h i n g r o s s income f o r t h a t p o s i t i o n .

         45.     On o r a b o u t A u g u s t 23, 2006, a l e t t e r                purportedly

s i g n e d b y d e f e n d a n t SEAN PATRICK GJERDE was p r e p a r e d a n d

subsequently submitted t o Trojan                           Lending.        The l e t t e r    falsely

s t a t e d t h a t d e f e n d a n t GJERDE h a d been A.W.'s " t a x l a w y e r p r e p a r e r

                                                        15
f o r t h e p a s t f i v e y e a r s " a n d c o n f i r m e d t h a t A.W.'s employment as

a web c o n s u l t a n t f o r B l a c k H o l l y w o o d         Network.     Shortly

t h e r e a f t e r , defendant        GJERDE p r o v i d e d a f a l s e v e r b a l v e r i f i c a t i o n

of   t h e i n f o r m a t i o n i n t h e l e t t e r t o a T r o j a n Lending           employee.

T h i s was done i n c o n n e c t i o n w i t h A.W.'s p u r c h a s e o f t h e r e s i d e n c e

at   341-345 Las Palmas.

        46.       On o r a b o u t A u g u s t 23, 2006, d e f e n d a n t          CHARLES ROBERT

MANESS p a r t i c i p a t e d i n t h e p r e p a r a t i o n o f a f a l s e and f r a u d u l e n t

p r o p o s a l a n d c o n t r a c t p u r p o r t e d l y i s s u i n g f r o m "B     D Ent."

calling        f o r payment o f $35,000 f o r v a r i o u s i m p r o v e m e n t s t o t h e

r e s i d e n c e l o c a t e d a t 9563 T a r b e r t D r i v e , i n c l u d i n g m a k i n g t h e

b a t h r o o m "ADA a p p r o v e d . "      T h i s i n v o i c e was s u b m i t t e d i n e s c r o w

d u r i n g H.M.'s p u r c h a s e o f t h e r e s i d e n c e a t 9563 T a r b e r t D r i v e ,

and r e s u l t e d i n a payment o f $35,000 t o B.D., H.M.'s m i n o r

daughter.

        47.       On o r a b o u t A u g u s t 24, 2006, d e f e n d a n t NICOLE DAWSON

s i g n e d a f a l s e U n i f o r m R e s i d e n t i a l Loan A p p l i c a t i o n s u b m i t t e d f o r

f i n a n c i n g o f h e r p u r c h a s e o f t h e r e s i d e n c e a t 8633 P r a i r i e w o o d s

Drive.         The a p p l i c a t i o n f a l s e l y   a n d f r a u d u l e n t l y s t a t e d , among

other things,            t h a t defendant          DAWSON h a d p r e v i o u s l y b e e n employed

as a c l a i m s e x a m i n e r f o r Edwards, H e n r y & A s s o c i a t e s , and t h a t

her monthly           income was $8,667.                 I t also f a i l e d t o disclose her

ownership          (and a t t e n d a n t l i a b i l i t i e s )    o fthe property located a t

1316    Yosemite          Circle.

         48.      On o r a b o u t      September 26, 2006, d e f e n d a n t            SEAN PATRICK

GJERDE s i g n e d a l e t t e r , w h i c h was s u b s e q u e n t l y         submitted t o

T r o j a n Lending,         and which f a l s e l y s t a t e d t h a t defendant              GJERDE

had b e e n A.C.'s " t a x l a w y e r p r e p a r e r f o r t h e p a s t f o u r y e a r s . "

                                                         16
The    l e t t e r f a l s e l y c o n f i r m e d t h a t A.C. " i s t h e p r o d u c t i o n

d i r e c t o r f o r Bay A r e a P r o d u c t i o n s . "     I naddition,            defendant

GJERDE p r o v i d e d a f a l s e v e r b a l v e r i f i c a t i o n o f A.C.'s employment

to    T r o j a n Lending.         F i n a l l y , also included i n the Trojan                     Lending

f i l e was a f a l s e a n d f r a u d u l e n t 2005 Form 1040 U.S. I n d i v i d u a l

Income Tax R e t u r n          f o r A.C, signed by defendant                     GJERDE as t h e

p a i d preparer, which              f a l s e l y s t a t e d t h a t A.C. was employed as a

P r o d u c t i o n D i r e c t o r f o r Bay A r e a P r o d u c t i o n s .    A l l o f t h i s was

done i n c o n n e c t i o n w i t h A.C.'s p u r c h a s e o f t h e r e s i d e n c e a t 9720

Cariann         Court.

        49.       On o r a b o u t September 28,              2006, d e f e n d a n t     HODA SAMUEL

p a r t i c i p a t e d i n t h e " p r e p a r a t i o n o f a R e s i d e n t i a l Purchase

Agreement a n d Addendum r e l a t i n g t o C.S.'s p u r c h a s e o f t h e

r e s i d e n c e a t 13 0 G r o t h C i r c l e .      The P u r c h a s e Agreement o f f e r e d a

p u r c h a s e p r i c e t h a t exceeded t h e l i s t p r i c e b y a p p r o x i m a t e l y

$30,000 a n d t h e Addendum s t a t e d t h a t t h e S e l l e r w o u l d                  credit

$20,000 " t o w a r d s        r e m o d e l i n g / r e p a i r s t o make ADA a p p r o v e d . "

         50.       I n c o n n e c t i o n w i t h C.S.'s p u r c h a s e o f t h e r e s i d e n c e a t

13 0 G r o t h C i r c l e ,    defendant        HODA SAMUEL i n f o r m e d t h e           listing

a g e n t t h a t C.S. h a d a d a u g h t e r        i n a w h e e l c h a i r a n d needed t o

modify         t h e home f o r h e r .

         51.       On o r a b o u t O c t o b e r 12, 2006, d e f e n d a n t          CONNIE DEVERS

p a r t i c i p a t e d i n the preparation o f a f a l s e Uniform R e s i d e n t i a l

Loan A p p l i c a t i o n f o r u s e i n t h e f i n a n c i n g o f C.S.'s p u r c h a s e o f

13 0 G r o t h C i r c l e .      The a p p l i c a t i o n f a l s e l y a n d f r a u d u l e n t l y

s t a t e d , among o t h e r t h i n g s , t h a t C.S. was p a i d $6,300 a month

f r o m h i s e m p l o y e r a n d t h a t he i n t e n d e d t o o c c u p y t h e p r o p e r t y as

his    primary        residence.

                                                        17
        52.      On o r a b o u t O c t o b e r 2 1 , 2006, d e f e n d a n t DANIEL HARRISON

signed a f a l s e Uniform Residential                        Loan A p p l i c a t i o n   f o r use i n

the    f i n a n c i n g o f h i s p u r c h a s e o f 23 04 E v e r g r e e n S t r e e t .      The

a p p l i c a t i o n f a l s e l y and f r a u d u l e n t l y s t a t e d ,   among o t h e r     things,

t h a t H a r r i s o n was e m p l o y e d as D i r e c t o r o f t h e O a k l a n d       Youth

Success C e n t e r a n d was p a i d            $7,350 a month f o r t h a t p o s i t i o n .

         53.     On o r a b o u t O c t o b e r 20, 2006, d e f e n d a n t YGNACIA

BRADFORD p r o v i d e d a f a l s e v e r i f i c a t i o n t o a W a s h i n g t o n         Mutual

Bank employee t h a t d e f e n d a n t DANIEL HARRISON was employed                                 full

t i m e as t h e D i r e c t o r     o f t h e Oakland         Y o u t h Success C e n t e r .       This

was done i n c o n n e c t i o n w i t h d e f e n d a n t HARRISON'S p u r c h a s e o f t h e

r e s i d e n c e a t 2304 E v e r g r e e n      Street.

         54.     On o r a b o u t O c t o b e r 20, 2006, d e f e n d a n t CONNIE DEVERS

p r o v i d e d a f a l s e v e r i f i c a t i o n t o a Washington             M u t u a l Bank

employee i n d i c a t i n g t h a t d e f e n d a n t DANIEL HARRISON h a d r e n t e d t h e

property        a t 697 S a n t i a g o Avenue, Sacramento, s i n c e A u g u s t o f

2004.       T h i s was done i n c o n n e c t i o n w i t h d e f e n d a n t         HARRISON'S

purchase        o f t h e r e s i d e n c e a t 23 04 E v e r g r e e n         Street.

         55.     On o r a b o u t O c t o b e r 25, 2006, d e f e n d a n t HODA SAMUEL

p a r t i c i p a t e d i nthepreparation                of a Residential             Purchase

Agreement a n d Addendum r e l a t i n g t o J.L.'s p u r c h a s e                        of the

r e s i d e n c e a t 5831 7 9 t h S t r e e t .         The Purchase           Agreement o f f e r e d a

p u r c h a s e p r i c e t h a t exceeded t h e l i s t           p r i c e by approximately

$35,000, a n d t h e Addendum s t a t e d t h a t t h e S e l l e r w o u l d c r e d i t

$30,000 " t o w a r d s r e p a i r s / u p g r a d e s t o make ADA a p p r o v e d . "

         56.      On o r a b o u t O c t o b e r 28, 2006, d e f e n d a n t HODA SAMUEL

informed t h e l i s t i n g         agent f o r t h e p r o p e r t y          a t 5831 79th        Street

t h a t t h e c r e d i t was n e c e s s a r y because J.L.'s d a u g h t e r was

                                                         18
c o n f i n e d t o a w h e e l c h a i r a n d J.L.        needed t o i n s t a l l a ramp and

lower counter-tops throughout the residence.

        57.     On o r a b o u t November 13, 2006, d e f e n d a n t                 HODA SAMUEL

p a r t i c i p a t e d i n t h e p r e p a r a t i o n o f a R e s i d e n t i a l Purchase

Agreement a n d Addendum r e l a t i n g t o D.J.'s p u r c h a s e o f t h e

r e s i d e n c e a t 2930 B r a n c h S t r e e t .        The P u r c h a s e Agreement o f f e r e d

a p u r c h a s e p r i c e t h a t exceeded t h e l i s t p r i c e b y a p p r o x i m a t e l y

$40,000, a n d t h e Addendum s t a t e d t h a t t h e S e l l e r w o u l d                credit

$30,000 " t o w a r d s     r e m o d e l i n g / r e p a i r s t o make ADA      approved."

        58.     On o r a b o u t November 27, 2006, d e f e n d a n t                 NICOLE DAWSON

p r o v i d e d a f a l s e v e r i f i c a t i o n t o a Washington Mutual              Bank

employee i n d i c a t i n g t h a t D.J. h a d r e n t e d t h e p r o p e r t y a t 8633

P r a i r i e w o o d s , S a c r a m e n t o , s i n c e November o f 2005.          T h i s was done

i n c o n n e c t i o n w i t h D.J.'s p u r c h a s e o f t h e r e s i d e n c e a t 2930

Branch S t r e e t .

        59.     On o r a b o u t December 7, 2006, d e f e n d a n t                 CHARLES ROBERT

MANESS p a r t i c i p a t e d i n t h e p r e p a r a t i o n o f a f a l s e       Uniform

R e s i d e n t i a l L o a n A p p l i c a t i o n f o r u s e i n t h e f i n a n c i n g o f J.L.'s

purchase o f 5831 79th S t r e e t .                   The a p p l i c a t i o n f a l s e l y a n d

f r a u d u l e n t l y s t a t e d , among o t h e r t h i n g s ,   t h a t J.L.    was employed

as a M a r k e t i n g D i r e c t o r f o r Edwards, H e n r y & A s s o c i a t e s , a n d t h a t

he r e c e i v e d $7,385 p e r month i n g r o s s               income.

        60.      I n s u p p o r t o f a n o t h e r o f D.J.'s a p p l i c a t i o n f o r

financing,        t h i s one f o r t h e p u r c h a s e o f t h e r e s i d e n c e a t 5732

R i v e r s i d e - D r i v e , defendant     SEAN PATRICK GJERDE s i g n e d a l e t t e r

d a t e d December 27,          2006.       The l e t t e r was s u b m i t t e d t o T r o j a n

Lending,       I n c . , and f a l s e l y s t a t e d t h a t defendant           GJERDE h a d been

D.J.'s " t a x l a w y e r p r e p a r e r f o r t h e p a s t t h r e e y e a r s " a n d f a l s e l y

                                                       19
c o n f i r m e d t h a t D.J. h a d been s e l f - e m p l o y e d as a c a r p e n t e r f o r

White Ent. f o r t h e past t h r e e years.

        61.     On o r a b o u t December 27, 2006, d e f e n d a n t               HODA SAMUEL

signed a f r a u d u l e n t p r o p o s a l and c o n t r a c t p u r p o r t i n g t o issue

f r o m D.J. o f J          C o n s t r u c t i o n f o r $35,000 w o r t h o f r e m o d e l i n g t o

the   p r o p e r t y a t 5705 Palm Avenue, i n c l u d i n g a c o m p l e t e           kitchen

remodel.        The p r o p o s a l a n d c o n t r a c t was s u b m i t t e d t o e s c r o w i n

c o n n e c t i o n w i t h K.C.'s p u r c h a s e o f t h e r e s i d e n c e a t 5705 Palm

Avenue, a n d r e s u l t e d i n a payment o f $35,000 t o D.J., a L i b e r t y

Real E s t a t e & Investment            Company c u s t o m e r .

        62.     On o r a b o u t J a n u a r y   15, 2007, d e f e n d a n t       TRACY PAINTER

p r o v i d e d a f a l s e v e r i f i c a t i o n t o a Washington Mutual             employee

i n d i c a t i n g t h a t R.W. h a d been employed b y P a i n t e r , Z w e i f e l a n d

Associates since January                 1 , 2004.       T h i s was done i n c o n n e c t i o n

w i t h R.W.'s p u r c h a s e o f t h e r e s i d e n c e a t 13 B r i a r Creek C o u r t .

        63.     On o r a b o u t    February       2 1 , 2007, d e f e n d a n t    CONNIE DEVERS

p a r t i c i p a t e d i n t h e p r e p a r a t i o n o f a f a l s e Uniform R e s i d e n t i a l

Loan A p p l i c a t i o n f o r u s e i n t h e f i n a n c i n g o f L.B.'s p u r c h a s e o f

the   r e s i d e n c e a t 2012 J u l i e s s e Avenue.          The a p p l i c a t i o n   falsely

and   f r a u d u l e n t l y s t a t e d , among o t h e r t h i n g s , t h a t L.B. was

e m p l o y e d b y P a i n t e r , Z w e i f e l a n d A s s o c i a t e s a n d was p a i d $5,700 a

month.

        64.     On o r a b o u t    February       26, 2007, d e f e n d a n t      DANA FAULKNER

p r o v i d e d a f a l s e v e r i f i c a t i o n t o a W a s h i n g t o n M u t u a l Bank

employee i n d i c a t i n g t h a t L.B. h a d r e n t e d t h e p r o p e r t y l o c a t e d a t

5740 N i n a Way, S a c r a m e n t o , s i n c e J a n u a r y    o f 2004.        T h i s was done

i n c o n n e c t i o n w i t h L.B.'s p u r c h a s e o f t h e r e s i d e n c e a t 2012

J u l i e s s e Avenue.

                                                    20
        65.     On o r a b o u t F e b r u a r y 22, 2007, d e f e n d a n t CONNIE DEVERS

participated i n the preparation                      o f a f a l s e Uniform           Residential

Loan A p p l i c a t i o n f o r use i n L i b e r t y M o r t g a g e Customer K.C.'s

f i n a n c i n g o f h i s p u r c h a s e o f t h e r e s i d e n c e a t 1064 Roanoke

Avenue.       The a p p l i c a t i o n f a l s e l y a n d f r a u d u l e n t l y s t a t e d ,   among

other    things,      t h a t K.C. was employed b y R&A I n v e s t m e n t a n d

P r o p e r t y Management a n d was p a i d $10,850 a m o n t h f o r t h a t

position.'

        All   i n v i o l a t i o n o f T i t l e 18, U n i t e d S t a t e s Code, S e c t i o n s

371,    1341 a n d 1014.

COUNTS TWO THROUGH THIRTY-ONE: [18 U.S.C. § 1341 - M a i l                                      Fraud]

        The Grand J u r y f u r t h e r c h a r g e s :

                                          HODA SAMUEL,
                                         CONNIE DEVERS,
                                    CHARLES ROBERT MANESS,
                                        DANA FAULKNER,
                                         TRACY PAINTER,
                                       YGNACIA BRADFORD,
                                     SEAN PATRICK GJERDE,
                                        NICOLE DAWSON,
                                     DANIEL HARRISON, a n d
                                     RONALD BURRIS, JR.,


defendants herein,             as f o l l o w s :

        66.     The a l l e g a t i o n s s e t f o r t h i n p a r a g r a p h s Two t h r o u g h

Thirteen      and F i f t e e n through S i x t y - F i v e          o f t h i s Indictment are

incorporated         b y r e f e r e n c e as t h o u g h s e t f o r t h      herein.

        67.     B e g i n n i n g no l a t e r t h a n o n o r a b o u t A p r i l       5, 2006, a n d

continuing        t o a t l e a s t o n o r a b o u t F e b r u a r y 28, 2007, i n t h e

Eastern D i s t r i c t     o f C a l i f o r n i a , t h e defendants d i d devise and

i n t e n d t o d e v i s e a m a t e r i a l scheme a n d a r t i f i c e        t o defraud

federally       insured       f i n a n c i a l i n s t i t u t i o n s a n d m o r t g a g e companies,

and    t o o b t a i n money a n d p r o p e r t y         f r o m s a i d l e n d e r s b y means o f

                                                      21
m a t e r i a l f a l s e and f r a u d u l e n t pretenses,         r e p r e s e n t a t i o n s , and

promises.

        68.     The o b j e c t s o f t h e scheme t o d e f r a u d a r e s e t f o r t h i n

paragraph Fourteen              o f t h e I n d i c t m e n t , w h i c h i s i n c o r p o r a t e d by-

r e f e r e n c e as t h o u g h s e t f o r t h h e r e i n .

        69.     On o r a b o u t t h e d a t e s      s e t f o r t h below, i n the S t a t e and

Eastern D i s t r i c t o f C a l i f o r n i a ,     f o r t h e purpose o f e x e c u t i n g and

a t t e m p t i n g t o execute the aforementioned                    scheme a n d a r t i f i c e t o

defraud,       the defendants           d i d knowingly          cause t o be p l a c e d i n a

p o s t o f f i c e o r a u t h o r i z e d d e p o s i t o r y f o r m a i l m a t t e r t o be s e n t

and   d e l i v e r e d by t h e U n i t e d States P o s t a l S e r v i c e , and d e p o s i t e d

and   c a u s e d t o be d e p o s i t e d a n y m a t t e r o r t h i n g w h a t e v e r t o be

sent and d e l i v e r e d by any p r i v a t e o r commercial                     interstate

carrier,       and k n o w i n g l y   c a u s e d t o be d e l i v e r e d b y m a i l o r s u c h

c a r r i e r according       t o the d i r e c t i o n thereon, t h e items                listed

below:

CT     DATE             SENDER                            RECIPIENT                 ITEM
       04/18/06         County o f                        Long Beach                Deed o f T r u s t
                        Sacramento:                       M o r t g a g e , P.O.    r e : 50 Quasar
                        Clerk-Recorder,                   Box 201085,               Circle,
                        600 8 t h S t r e e t ,           S t o c k t o n , CA      Sacramento
                        S a c r a m e n t o , CA
        04/12/06        County o f                        Long Beach                Deed o f T r u s t
                        Sacramento:                       M o r t g a g e Co.,      r e : 165
                        Clerk-Recorder,                   P.O. Box                  Creekside
                        600 8 t h S t r e e t ,           201085,                   Circle,
                        S a c r a m e n t o , CA          S t o c k t o n , CA      Sacramento
        05/12/06        C o u n t y o f San               Long Beach                Deed o f T r u s t
                        J o a q u i n , 44 N.             M o r t g a g e Co.,      r e : 2309 West
                        San J o a q u i n                 P.O. Box                  B u r t o n Way,
                        S t r e e t , S t e . 260,        201085,                   Lodi
                        S t o c k t o n , CA              S t o c k t o n , CA




                                                     22
5    05/12/06   County o f                 Long Beach                   Deed o f T r u s t
                Sacramento:                M o r t g a g e Co.,         re:       2237
                Clerk-Recorder,            P.O. Box                     F r u i t r i d g e Rd,
                600 8 t h S t r e e t ,    201085,                      Sacramento
                Sacramento, CA             S t o c k t o n , CA
6    05/19/06   County o f                 New C e n t u r y            Deed o f T r u s t
                Sacramento:                Mortgage                     re:  3 0 Quasar
                Clerk-Recorder,            Corp., 184 00                Circle,
                600 8 t h S t r e e t ,    Von Karman,                  Sacramento
                Sacramento, CA             S t e . 1000,
                                           I r v i n e , CA
7    06/09/06   County o f                 Long Beach                   Deed o f T r u s t
                Sacramento:                M o r t g a g e Co.,         r e : 2305 J o h n
                Clerk-Recorder,            2210                         S t i l l Drive,
                600 8 t h S t r e e t ,    Enterprise                   Sacramento
                Sacramento, CA             Drive,
                                           F l o r e n c e , SC

8    06/19/06   County o f                     Long Beach               Deed o f T r u s t
                Sacramento:                    M o r t g a g e , 2210   r e : 5943
                Clerk-Recorder,                Enterprise               C l o v e r Manor
                600 8 t h S t r e e t ,        Drive,                   Way,
                Sacramento, CA                 F l o r e n c e , SC     Sacramento

9    06/22/06   County o f                     O p t i o n One          Deed o f T r u s t
                Sacramento:                    Mortgage                 re:       5941
                Clerk-Recorder,                Corp., P.O.              C l o v e r Manor
                600 8 t h S t r e e t ,        Box 57096,               Way,
                Sacramento, CA                 I r v i n e , CA         Sacramento

10   06/22/06   County o f                     F i r s t NLC            Deed o f T r u s t
                Sacramento:                    Financial                r e : 5945
                Clerk-Recorder,                S e r v i c e s , 700    C l o v e r Manor
                600 8 t h S t r e e t ,        W. H i l l s b o r o     Way,
                Sacramento, CA                 B l v d . B-1            Sacramento
                                               #204,
                                               Deerfield
                                               Beach, FL

11   06/23/06   County o f                     Argent                   Deed o f T r u s t
                Sacramento:                    M o r t g a g e Co. ,    r e : 5947
                Clerk-Recorder,                2100 A l t 19            C l o v e r Manor
                600 8 t h S t r e e t ,        N o r t h , Palm         Way,
                Sacramento, CA                 H a r b o r , FL         Sacramento
12   06/30/06   County o f                     First                    Deed o f T r u s t
                Sacramento:                    F r a n k l i n , 1935   r e : 10024
                Clerk-Recorder,                International            Shana Way, E l k
                600 8 t h S t r e e t ,        Way, I d a h o           Grove
                Sacramento, CA                 F a l l s , ID



                                          23
13   07/20/06   C o n t r a Costa              NICOLE DAWSON,             Individual
                County Recorder's              P.O. Box                   G r a n t Deed r e :
                O f f i c e , 555              580844, E l k              1316 Y o s e m i t e ,
                Escobar S t r e e t ,          Grove, CA                  C i r c l e , Oakley
                M a r t i n e z , CA
14   08/24/06   County o f                     O p t i o n One            Deed o f T r u s t
                Sacramento:                    Mortgage                   r e : 9563
                Clerk-Recorder,                Corp., P.O.                T a r b e r t Dr.,
                600 8 t h S t r e e t ,        Box 57096,                 Sacramento
                Sacramento, CA                 I r v i n e , CA
15   08/29/06   County o f                     O p t i o n One            Deed o f T r u s t
                Sacramento:                    Mortgage                   r e : 8 633
                Clerk-Recorder,                Corp., P.O.                Prairie-woods
                600 8 t h S t r e e t ,        Box 57096,                 Dr. ,
                Sacramento, CA                 I r v i n e , CA           Sacramento

16   08/31/06   County o f                     T r o j an                 Deed o f T r u s t
                Sacramento:                    Lending, I n c . ,         re:  341-345
                Clerk-Recorder,                1518                       Las Palmas,
                600 8 t h S t r e e t ,        Washington                 Sacramento
                Sacramento, CA                 Blvd.,
                                               M o n t e b e l l o , CA
17   09/11/06   County o f                     O p t i o n One            Deed o f T r u s t
                Sacramento:                    Mortgage                   r e : 197
                Clerk-Recorder,                Corp., P.O.                Stanford
                600 8 t h S t r e e t ,        Box 57096,                 Avenue,
                Sacramento, CA                 I r v i n e , CA           Sacramento
18   09/11/06   County o f                     Argent                     Deed o f T r u s t
                Sacramento:                    M o r t g a g e Co.,       r e : 2928
                Clerk-Recorder,                2100 A l t 19              Babson D r i v e ,
                600 8 t h S t r e e t ,        N o r t h , Palm           E l k Grove
                Sacramento, CA                 H a r b o r , FL

19   09/29/06   County o f                     T r o j an                 Deed o f T r u s t
                Sacramento:                    Lending, I n c . ,         r e : 9720
                Clerk-Recorder,                1518                       Cariann Court,
                600 8 t h S t r e e t ,        Washington                 E l k Grove
                Sacramento, CA                 Blvd.,
                                               M o n t e b e l l o , CA
20   10/16/06   County o f                     Washington                 Deed o f T r u s t
                Sacramento:                    M u t u a l Bank,          r e : 130 G r o t h
                Clerk-Recorder,                2210                       Circle,
                600 8 t h S t r e e t ,        Enterprise                 Sacramento
                Sacramento, CA                 Drive,
                                               F l o r e n c e , SC




                                          24
21   10/26/06   County o f                     Washington                  Deed o f T r u s t
                Sacramento:                    M u t u a l Bank,           re:  2304
                Clerk-Recorder,                2210                        Evergreen
                600 8 t h S t r e e t ,        Enterprise                  Street,
                Sacramento, CA                 Drive,                      Sacramento
                                               F l o r e n c e , SC
22   10/27/06   County o f                     Argent                      Deed o f T r u s t
                Sacramento:                    M o r t g a g e Co.,        re:  4515 5 4 t h
                Clerk-Recorder,                2100 A l t 19               Street,
                600 8 t h S t r e e t ,        N o r t h , Palm            Sacramento
                Sacramento, CA                 H a r b o r , FL
23   11/08/06   County o f                     O p t i o n One             Deed o f T r u s t
                Sacramento:                    Mortgage                    r e : 84 74
                Clerk-Recorder,                Corp., P.O.                 S u n b l a z e Way,
                600 8 t h S t r e e t ,        Box 57096,                  Sacramento
                Sacramento, CA                 I r v i n e , CA

24   11/28/06   County o f                     Capital                     Deed o f T r u s t
                Sacramento:                    Funding                     re:  7481
                Clerk-Recorder,                Solutions,                  Cosgrove Way,
                600 8 t h S t r e e t ,        I n c . , 655               Sacramento
                Sacramento, CA                 University
                                               Ave., S t e .
                                               123,
                                               Sacramento,            CA
25   12/08/06   County o f                     Washington                  Deed o f T r u s t
                Sacramento:                    M u t u a l Bank,           re:  2930
                Clerk-Recorder,                2210                        Branch S t . ,
                600 8 t h S t r e e t ,        Enterprise                  Sacramento
                Sacramento, CA                 Drive,
                                               F l o r e n c e , SC

26   12/15/06   County o f                     Capital                     Deed o f T r u s t
                Sacramento:                    Funding                     r e : 5831 7 9 t h
                Clerk-Recorder,                Solutions,                  Street,
                600 8 t h S t r e e t ,        I n c . , 655               Sacramento
                Sacramento, CA                 University
                                               Ave., S t e .
                                               123,
                                               Sacramento,            CA
27   01/03/07   Yuba C o u n t y               Trojan                      Deed o f T r u s t
                R e c o r d e r , 915 8 t h    Lending, I n c . ,          r e : 5732
                Street,                        1518                        R i v e r s i d e Dr.
                M a r y s v i l l e , CA       Washington                  Olivehurst
                                               Blvd.,
                                               M o n t e b e l l o , CA




                                              25
28     01/17/07         County o f                      Washington                  Deed o f T r u s t
                        Sacramento:                     M u t u a l Bank,           r e : 13 B r i a r
                        Clerk-Recorder,                 2210                        Creek C o u r t ,
                        600 8 t h S t r e e t ,         Enterprise                  Sacramento
                        Sacramento, CA                  Drive,
                                                        F l o r e n c e , SC
29     01/25/07         County o f                      O p t i o n One             Deed o f T r u s t
                        Sacramento:                     Mortgage                    r e : 57 05 Palm
                        Clerk-Recorder,                 Corp., P.O.                 Avenue,
                        600 8 t h S t r e e t ,         Box 57096,                  Sacramento
                        Sacramento, CA                  I r v i n e , CA
30     02/26/07         County o f                      WMC M o r t g a g e         Deed o f T r u s t
                        Sacramento:                     Corp., 3100                 r e : 1064
                        Clerk-Recorder,                 T h o r n t o n Ave.,       Roanoke
                        600 8 t h S t r e e t ,         Burbank, CA                 Avenue,
                        Sacramento, CA                                              Sacramento
31     02/28/07         County o f                      Washington                  Deed o f T r u s t
                        Sacramento:                     M u t u a l Bank,           r e : 2012
                        Clerk-Recorder,                 2210                        Juliesse
                        600 8 t h S t r e e t ,         Enterprise                  Avenue,
                        Sacramento, CA                  Drive,                      Sacramento
                                                        F l o r e n c e , SC



        All    i nv i o l a t i o n of T i t l e    18, U n i t e d S t a t e s Code, S e c t i o n s

1341 a n d 2.

COUNTS THIRTY-TWO THROUGH FORTY-EIGHT:                             [18 U.S.C. § 1014 - F a l s e
                                                                    Statements i n Mortgage
                                                                   Applications]
        70.     The a l l e g a t i o n s s e t f o r t h i n p a r a g r a p h s     Two t h r o u g h

T h i r t e e n and F i f t e e n through S i x t y - F i v e o f t h i s I n d i c t m e n t a r e

i n c o r p o r a t e d b y r e f e r e n c e as t h o u g h s e t f o r t h h e r e i n .

        71.     On o r a b o u t     t h e dates enumerated below i n t h e E a s t e r n

District of California,                  t h e defendants         e n u m e r a t e d as t o e a c h

c o u n t , d i d k n o w i n g l y make a n d cause t o be made f a l s e                   statements,

f o r t h e purpose o f i n f l u e n c i n g t h e a c t i o n s o f f i n a n c i a l

institutions          t h e accounts        o f w h i c h were i n s u r e d b y t h e F e d e r a l

Deposit       Insurance Corporation, i n connection w i t h                          applications

f o r r e s i d e n t i a l l o a n s , as more p a r t i c u l a r l y d e s c r i b e d b e l o w :

                                                      26
COUNT   DATE       DEFENDANT   BANK      (property)         FALSE STATEMENT
32      04/05/06   DEVERS      Long Beach                   See P a r a g r a p h
                               Mortgage (165                31
                               Creekside Drive)
33      04/11/06   DEVERS      Long Beach                   See P a r a g r a p h
                               Mortgage (50                 32
                               Quasar C i r c l e )
34      05/03/06   FAULKNER    Long Beach                   See P a r a g r a p h
                               Mortgage (2237               33
                               F r u i t r i d g e Road)
35      05/08/06   DEVERS,     Long Beach                   See P a r a g r a p h
                   PAINTER     Mortgage (23 09              34
                               West B u r t o n Way)
36      06/03/06   FAULKNER    Long Beach                   See P a r a g r a p h
                               Mortgage (23 05              35
                               John S t i l l D r i v e )
37      06/06/06   FAULKNER    Long Beach                   See P a r a g r a p h
                               Mortgage (5943               37
                               C l o v e r Manor Way)
38      06/09/06   BURRIS      Long Beach                   See P a r a g r a p h
                               Mortgage (5943               38
                               C l o v e r Manor Way)
39      07/14/06   DAWSON      Long Beach                   See P a r a g r a p h
                               Mortgage (1316               43
                               Yosemite C i r c l e )
40      10/12/06   DEVERS      Washington M u t u a l       See P a r a g r a p h
                               Bank (130 G r o t h          51
                               Circle)
41      10/20/06   BRADFORD    Washington M u t u a l       See P a r a g r a p h
                               Bank (2304                   53
                               Evergreen S t r e e t )
42      10/20/06   DEVERS      Washington M u t u a l       See P a r a g r a p h
                               Bank (2304                   54
                               Evergreen S t r e e t )
43      10/21/06   HARRISON    Washington M u t u a l       See P a r a g r a p h
                               Bank (2304                   52
                               Evergreen S t r e e t )
44      11/27/06   DAWSON      Washington M u t u a l       See P a r a g r a p h
                               Bank (2930 B r a n c h       58
                               Street)
45      01/15/07   PAINTER     Washington M u t u a l       See P a r a g r a p h
                               Bank (13 B r i a r           62
                               Creek C o u r t )


                                    27
46          02/21/07         DEVERS             Washington Mutual                    See P a r a g r a p h
                                                Bank (2012                           63
                                                J u l i e s s e Avenue)
47          02/22/07         DEVERS             GE Money Bank                        See P a r a g r a p h
                                                (1064 Roanoke                        65
                                                Avenue)
48          02/26/07         FAULKNER           Washington Mutual                    See    Paragraph
                                                Bank (2012                           64
                                                J u l i e s s e Avenue)


        All    i n violation          o f T i t l e 18, U n i t e d S t a t e s Code, S e c t i o n s 2

and   1014.

FORFEITURE ALLEGATION: [18 U.S.C. § 9 8 2 ( a ) ( 2 ) ( A ) - F o r f e i t u r e ; 28
                       U.S.C. § 2 4 6 1 ( c ) ; Fed. R. C r i m . P. 32.2]

        72.      The a l l e g a t i o n s s e t f o r t h i n p a r a g r a p h s One t h r o u g h

Seventy-One o f t h i s           I n d i c t m e n t a r e i n c o r p o r a t e d b y r e f e r e n c e as

though s e t f o r t h h e r e i n f o r t h e purpose o f a l l e g i n g                 forfeiture

pursuant       t o T i t l e 18, U n i t e d S t a t e s Code, S e c t i o n 9 8 2 ( a ) ( 2 ) ( A ) .

        73.      Upon a c o n v i c t i o n o f a n y o f t h e o f f e n s e s a l l e g e d i n

C o u n t s One t h r o u g h F o r t y - E i g h t , t h e d e f e n d a n t s ,

                                           HODA SAMUEL,
                                          CONNIE DEVERS,
                                     CHARLES ROBERT MANESS,
                                          DANA FAULKNER,
                                          TRACY PAINTER,
                                        YGNACIA BRADFORD,
                                      SEAN PATRICK GJERDE,
                                          NICOLE DAWSON,
                                      DANIEL HARRISON, a n d
                                       RONALD BURRIS, JR. ,


shall     forfeit       t o t h e United States, pursuant                     t o T i t l e 18, U n i t e d

S t a t e s Code, S e c t i o n 9 8 2 ( a ) ( 2 ) ( A ) , a n y p r o p e r t y c o n s t i t u t i n g o r

d e r i v e d from,     gross     proceeds obtained, d i r e c t l y                o r i n d i r e c t l y , as

a r e s u l t o f such v i o l a t i o n ,       including but not l i m i t e d              t o the

following:

                                                       28
         (a)    A sum o f money e q u a l t o t h e t o t a l amount o f money

                 i n v o l v e d i n t h e scheme,         f o r which defendant i s

                convicted,         i n a n amount n o t l e s s t h a n            $5,500,000.

        74.      I f any p r o p e r t y s u b j e c t t o f o r f e i t u r e ,    as a r e s u l t o f

t h e o f f e n s e s a l l e g e d i n Counts One t h r o u g h F o r t y - E i g h t o f t h i s

Indictment:

         (a)     c a n n o t be l o c a t e d upon t h e e x e r c i s e o f due d i l i g e n c e ;

         (b)    h a s been t r a n s f e r r e d o r s o l d t o , o r d e p o s i t e d w i t h , a

                 third      person;

         (c)    h a s been p l a c e d beyond t h e j u r i s d i c t i o n o f t h e C o u r t ;

         (d)    h a s been s u b s t a n t i a l l y d i m i n i s h e d i n v a l u e ; o r

         (e)    h a s been c o m m i n g l e d w i t h o t h e r p r o p e r t y w h i c h c a n n o t be

                 subdivided without              difficulty;

it   i s the i n t e n t o f the United States, pursuant                           t o T i t l e 18,

U n i t e d S t a t e s Code, S e c t i o n 9 8 2 ( b ) ( 1 ) , i n c o r p o r a t i n g T i t l e 2 1 ,

U n i t e d S t a t e s Code, S e c t i o n 8 5 3 ( p ) , t o seek f o r f e i t u r e o f a n y

o t h e r p r o p e r t y o f s a i d defendants           up t o t h e v a l u e o f t h e p r o p e r t y

subject t o f o r f e i t u r e .

        A l l pursuant        t o 18 U.S.C. §              982(a) (2) (A) a n d 28 U.S.C.

§    2461(c).




                                                      29
  UNITED STATES DISTRICT COURT
                       Eastern District of California

                            Criminal Division


               THE UNITED STATES OF AMERICA
                                    vs.
                          HODA SAMUEL,
                          CONNIE DEVERS,
                     CHARLES ROBERT MANESS,
                         DANA FAULKNER,
                         TRACY PAINTER,
                       YGNACIA BRADFORD,
                      SEAN PATRICK GJERDE,
                         NICOLE DAWSON,
                       DANIEL HARRISON, and
                        RONALD BURIS, JR.


                           INDICTMENT

 VIOLATION(S): 18 U.S.C. §§ 371,1341, 1014 - Conspiracy to
  Commit Mail Fraud and Make False Statements in Mortgage
 Applications; 18 U.S.C. § 1341 - Mail Fraud; 18 U.S.C. § 1014 -
    False Statements in Mortgage Applications; 18 U.S.C. §
               982(a)(2)(A)- Forfeiture Allegations


A true bill,



                                                 Foreman.



Filed in open court this           10            day


                               ofJuneA.D. 2010




                     O
                    N BAIL                      ARN
                                               WRAT


                                 GPO 863 525
Count One 18 USC 371 (Conspiracy): All Defendants

       5 year term of imprisonment
       Fine up to $250,000
       3 year term of supervised release
       $100 special assessment

Counts Two though Thirty-One 18 U.S.C. 1341 (Mail Fraud): All Defendants

       20 year term of imprisonment
       Fine up to $250,000
       3 year term of supervised release
       $100 special assessment

Counts Thirty-Two through Forty-Eight 18 USC 1014 (False Statement Re: Loan Application):

CONNIE DEVERS (Counts 32, 33, 35, 40, 42, 46, 47),
DANA FAULKNER (Counts 34, 36, 37, 48),
TRACY PAINTER (Counts 35, 45),
YGNACIA BRADFORD (Count 41),
NICOLE DAWSON (Counts 39, 44),
DANIEL HARRISON (Count 43), and
RONALD BURRIS, JR. (Count 38)

       30 year term of imprisonment
       Fine up to $1,000,000
       5 year term of supervised release
       $100 special assessment

Forfeiture: As alleged in the indictment

				
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