Skip to main content

California Mortgage Fraud Operator Sentenced to 24 Years

Mar 06, 2015

The principal operator of a major California-based mortgage fraud scheme has been sentenced to 24 years in prison.

Alan David Tikal was convicted in September of 11 counts of mail fraud and one count of money laundering based on his 2010-2013 operation of KATN, which scammed more than 1,000 California homeowners—mostly non-English-speaking immigrants—with false promises of reducing their mortgage debt by as much as 75 percent. Tikal also originated phony new mortgages that collected 25 percent of the original loan obligations. Tikal and his associates collected more than $5.8 million in fees and monthly payments, which they used to support an extravagant private lifestyle. Many of Tikal’s victims lost their homes and their life savings.

Last month, Tikal associate Ray Kornfeld was sentenced to five years for his role in the scheme and ordered to pay over $3 million in restitution to the victims, while co-defendant Tamara Tikal has already entered a guilty plea and will be sentenced on April 23.

“Alan Tikal’s actions were illegal and will not be tolerated in California,” said California Attorney General Kamala D. Harris. “He and his partners defrauded hundreds of hard-working Californians who were fighting to keep their homes during our state’s foreclosure crisis. This predatory scheme robbed families of their life savings and in many cases, their homes. I thank our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their work to bring these individuals to justice.”

About the author
Published
Mar 06, 2015
Rocket Companies Reports Decline in Fourth Quarter Revenue, Projects Optimism for Future Growth

Despite revenue dip, mortgage giant sees increase in market share and advances in AI technology.

Feb 22, 2024
Broker Action Coalition Unveils Inaugural Board Of Directors

Newly formed nonprofit organization BAC announces industry professionals to guide its mission of legislative change and educational initiatives in the mortgage industry.

Feb 21, 2024
GSEs Report Strong Earnings

Robust performance marks growth for both Fannie Mae and Freddie Mac, despite a dip in home purchases.

Feb 15, 2024
Friendly Competition Joins Forces

The merger aims to enhance local fulfillment and sales support, marking Guild’s sixth acquisition since 2021 and expanding its licensed originators to over 2,100 amidst a challenging market.

Feb 14, 2024
Guild Mortgage Announces Acquisition Of Competitor Academy Mortgage, Bolsters National Presence

The strategic move will see Guild Mortgage enhance its market share and become the 8th largest non-bank retail lender in the U.S., welcoming over 600 loan officers from Academy.

Feb 13, 2024
Proprietary Capital-Led Group Acquires Multichannel Lender AFR

Colorado-based fund manager Proprietary Capital finalizes acquisition of American Financial Resources.

Feb 13, 2024