Feds Indict Two On Multi-State Mortgage Fraud Charges

Two California men have been indicted on accusations they were involved in a multi-state scheme involving mortgage fraud, credit repair, and government loan fraud. Two Texas residents are fugitives in the case.

The Department of Justice indictment, according to a news release, alleges the co-conspirators recruited clients for credit repair using company names of KMD Credit, KMD Capital, and Jeff Funding, among others. The Justice Department says they “cleaned” their clients’ credit histories by filing false identity theft reports with the FTC.

Steven Tetsuya Morizono, 59, of Mission Viejo, Calif., and Albert Lugene Lim, 53, of Laguna Niguel, Calif., have been arraigned on the charges. Two others — Heather Ann Campos, 43, and David Lewis Best Jr., 58, both of Houston — are fugitives with warrants outstanding for their arrest.

After fraudulently inflating client credit worthiness, the co-conspirators fraudulently obtained credit cards, disaster loans, and mortgages for themselves and their clients, according to the Justice Department. They were able to accomplish this through false statements and fake documents, the department said. 

Morizono and his crew maintained control of the properties purchased in their clients’ names, according to the indictment. The purpose, the indictment alleges, was to build a real estate portfolio worth millions of dollars and enrich themselves with rental income.

If convicted, Morizono and Lim face up to 30 years in federal prison and a possible $1 million maximum fine. The case is being prosecuted in the Southern District of Texas.