Feds Indict Two On Multi-State Mortgage Fraud Charges – NMP Skip to main content

Feds Indict Two On Multi-State Mortgage Fraud Charges

Mar 25, 2022
Photo credit: Getty Images/artisteer
Senior Editor

California duo allegedly used credit repair business to obtain fraudulent mortgages.

KEY TAKEAWAYS
  • Pair allegedly 'cleaned clients’ credit histories by filing false identity theft reports with the FTC
  • False statements and fake documents behind the scheme
  • Portfolio built to derive rental income, DOJ says

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.

About the author
Senior Editor
Keith Griffin is a senior editor at NMP.
Published
Mar 25, 2022
MaxClass: Education Meets Lead Generation

CEO Kelly Hendricks details how MaxClass and HomeQB are opening a new referral channel for originators

Fannie Mae Returns To Distressed-Loan Market With $214 Million Sale

The agency’s first nonperforming-loan offering in 13 months transfers 969 deeply delinquent mortgages to private buyers, including a small pool concentrated in Dallas-Fort Worth

Aug 20, 2026
Brief Refinance Shift Tests Mortgage Lenders’ Compliance Controls

Critical defect rate jumps 23.9% as math-based compliance findings expose the potential for one systemic error to affect loans across a lender’s book

Checkr Buys Truv To Move Mortgage Verification Beyond Documents

The acquisition adds consumer-permissioned payroll and banking data to Checkr’s mortgage platform while lenders confront increasingly convincing fabricated financial records

Aug 19, 2026
IMBs Make Most Mortgages. CHLA Says It’s Time They Got FHLBank Access.

As FHFA moves to give Federal Home Loan Banks more flexibility, the trade group is renewing its push to give qualified independent mortgage banks access to FHLBank membership and liquidity

Insuring The Risk To Lenders At Closing

Traditional protections like title insurance and closing protection letters may leave lenders exposed to significant settlement, funding, and fraud-related losses