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
A Beat Without A Cop

Dems, former CFPB Director, those targeted in lawsuits weigh in on attempts to discontinue CFPB

We Don't Care About You

The signals that unplugging the CFPB sends

Mass Firings At CFPB Imminent, Filing Says

Unions representing CFPB employees said 95% of the Bureau's workforce could be cut by the weekend

Feb 14, 2025
CFPB’s Days Numbered?

‘This Spigot … Is Now Being Turned Off’ said Acting Administrator Vought

Treasury Secretary Scott Bessent Named CFPB Acting Director

Bessent says he will work to lower costs, accelerate economic growth

Trump Fires CFPB Director Chopra

Chopra posts a letter to X with his final statements