A former Dixon businessman sentenced to prison last year for bank robbery has been charged with mortgage fraud.
A federal grand jury in Sacramento today returned a two-count indictment charging Hubert Rotteveel, 49, with mail fraud for a mortgage fraud scheme, according to a federal Department of Justice news release.
According to the indictment, Rotteveel acted as a real estate salesman for 13 properties in Dixon that were purchased by two people. Rotteveel allegedly inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the purchasers to induce the lenders to fund loans for the properties.
For most transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company owned by Rotteveel, without disclosing to the lenders that these payments were made, officials said. A total of more than $700,000 was distributed to Windmill Properties under this scheme, and the lenders lost more than $3 million when all 13 properties underwent foreclosure.
The case resulted from a joint investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.
In October 2010, Rotteveel pleaded no contest in Yolo County Superior Court to felony bank robbery charges and was sentenced to four years and eight months in prison. He is in the California Correctional Center in Susanville.
PHOTO CREDIT: Hubert Rotteveel
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