$50 Million California Fraud Scheme Convictions Reached

What do you get when a notary public/real estate broker and a finance executive combine forces to fool banks about loan payoffs? Very convincing “evidence” that results in $50 million in fraudulently obtained loan proceeds. The two Californians in question, Peter Doye and Raquel Reid, used their combined expertise and resources to defraud lenders into making large loans against four different multimillion-dollar mansions in La Jolla, California, and Del Mar, California. The two used forged documents to make the loans appear paid off, then obtained additional loans from other lenders who believed the properties were free and clear[1].

The two worked with several other colleagues at their respective businesses to create forged real estate lien “releases” that demonstrated the loans had been paid in full. Then, they recorded the records with the San Diego County Recorder’s Office. Reid, a public notary, notarized the forged documents to make the fraudulent paperwork appear authentic. Two other co-conspirators are currently serving multi-year sentences after pleading guilty and, furthermore, will pay more than $43 million in restitution to the lenders.

The team claimed the high-end homes would be used as luxury rentals and investment properties. However, Doye and another conspirator actually lived in the properties with their families instead. Then, they used the loan fraud to fund other business deals, and one conspirator, a lawyer, admitted he used his legal expertise to generate false documents. When the lenders detected the scam, the legal experts in the group created more false documents and Reid destroyed her notary book and cut up her stamp before reporting to the California Secretary of State that the book had been lost.

“The defendants attempted to use their significant real estate experience to pull off an egregious fraud that created serious consequences for lenders and title owners,” stated US. Attorney Adam Braverman of the case[2]. He added the case demonstrates how committed federal prosecutors are to “protecting the integrity of our lending system.” Doye and Reid are in custody and awaiting sentencing, currently scheduled for March 4, 2019. They face multiple years of imprisonment and hundreds of thousands of dollars in fines.

What do you think should happen to these individuals?

 

 

 

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[1] http://www.mortgagefraudblog.com/two-convicted-50-million-fraud-scheme/

[2] https://www.justice.gov/usao-sdca/pr/jury-convicts-san-diego-executive-and-broker-50-million-real-estate-fraud

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