By Cathy Locke
clocke@sacbee.com
After deliberating for little more than an hour, a federal court jury today found an Elk Grove man guilty of involvement in a Sacramento-area mortgage fraud scheme.
Gabriel Richard Viramontes, 48, was convicted by of six counts of bank fraud and seven counts of mail fraud. The verdict was returned following a seven-day trial in Sacramento before U.S. District Judge Edward J. Garcia, according to a federal Department of Justice news release.
According to testimony presented at trial, Viramontes and three co-defendants, who had already pleaded guilty to related charges, engaged in a mortgage fraud scheme that involved at least 19 homes with loans of more than $8 million.
From June through October 2006, the defendants through VFM Investment Group, Esnian Mortgage Realty and Freedom Capital Mortgage, asked investors to purchase with no money down single-family homes on behalf of others with bad credit who wished to purchase homes. The investors were told they would benefit financially from the transactions.
The defendants then defrauded lenders such as Washington Mutual Bank, Long Beach Mortgage and Fremont Investment and Loan by submitting fraudulent loan applications that inflated the buyers' income, falsely stated that a buyer was employed at a specific job and falsely stated that the properties would be owner-occupied.
Officials said the purpose of the scheme was to ensure that the home purchase transactions closed, so that the defendants would receive substantial loan broker commissions and illegal kickbacks from real estate sales commissions.
Following the verdict, Judge Garcia remanded Viramontes into custody to await sentencing. Viramontes is to be sentenced June 23.
Co-defendant James Roy Martin, 40, pleaded guilty in March 2010 to making false statements on a loan application and to money laundering. Mario Fellini III, 42, also pleaded guilty in March 2010 to making false statements on a loan application. A third co-defendant, Joseph Salvatore Gallo, 38, pleaded guilty in February to concealing knowledge of a felony. All three are from Sacramento and are awaiting sentencing.
The case resulted from an investigation by the Internal Revenue Service Criminal Investigation, FBI and the California Department of Real Estate.
Call The Bee's Cathy Locke, (916) 321-5287.
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