An Irvine man has been arrested in a mortgage fraud case involving properties in Rocklin and Roseville.
A federal grand jury in Sacramento returned a three-count indictment Thursday charging Alexander A. Romaniolis, 48, with mail fraud. The indictment was unsealed after his arrest today in Huntington Beach, according to a federal Department of Justice news release.
The indictment alleges that Romaniolis recruited five straw buyers to purchase eight residential properties in Rocklin, Roseville and San Clemente. He allegedly assisted the straw buyers in providing false information to lenders about their employment, income, assets and intent to occupy properties as primary residences. In most cases, authorities said, the straw buyers claimed to be executives of companies created and controlled by Romaniolis.
According to the indictment, Romaniolis was responsible for origination of more than $5 million in residential mortgage loans in the scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.
The case resulted from an investigation by the Federal Bureau of Investigation and the California Attorney General's Mortgage Fraud Task Force.