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911 Tapes Released of Mission Viejo High School…

Woman Faces 30 Years in $20-Million Mortgage Fraud

Wanda Coleman pleads guilty in a scheme to defraud banks by using fake buyers to purchase homes at inflated prices and then defaulting on the loans.

A 59-year-old Washington woman pleaded guilty Thursday to spearheading a $20-million mortgage fraud scheme on about 30 properties in Orange, Riverside and San Bernardino counties, prosecutors said.

Wanda Coleman, who used to live in Pauma Valley in San Diego County and now resides in Glenoma, Wash., admitted one count of mail fraud, according to Assistant U.S. Attorney Bruce Riordan. She faces up to 30 years in prison when sentenced Jan. 25.

Authorities in Southern California started the investigation, which was eventually transferred to federal courts in Oregon, closer to Coleman's home.

Coleman and several others conspired to fraudulently obtain loans by purchasing homes in the names of various straw buyers, according to prosecutors. Coleman offered to pay the sellers substantially more than the asking price as long as they agreed to give her the difference, prosecutors said.

The loan applications in the name of straw buyers recruited by Coleman inflated employment records, income and assets, prosecutors said. Bank statements and other documents were forged to back up the bogus information, prosecutors said. Coleman received more than $20 million in loans for about 30 properties in the three counties, prosecutors said. The straw buyers defaulted on the loans, leading to foreclosure and losses of more than $11 million to the lenders, prosecutors said.

 - City News Service

Shripathi Kamath November 02, 2012 at 07:25 AM
Wall St, loses 13 trillion in a matter of weeks, and no one gets to jail. A Mission Viejo man pulls off a multi-million dollar scam, and no jail. http://missionviejo.patch.com/articles/m-v-man-must-pay-41m-was-never-charged-with-crime And a woman gets busted? The War on Women is real!
Yeparoo November 02, 2012 at 05:16 PM
Seems inconsistent. I like the one where the husband and wife teachers had sex with a high school student, and NO jail for either. Just weird. I'm venturing a guess, but I think the wife must have been a Tarrington woman: http://www.ocregister.com/news/shepard-376476-boy-prosecutors.html Shri - Maybe you could explain why the USAG did not pursue prosecutions in the MBS scandal. I'm sure the landscape must be rich for jail birds.
Scott Kimball November 09, 2012 at 06:11 PM
Wanda was just someone at one end of the daisy chain. She got nailed and the others didn't because she forged and falsified documents. No one else in the daisy chain was as easy to catch. Like I really feel sorry for the banks? My bank fee's alone probably offset this loss! The big banks are totally ripping off businesses and individuals with fee's and charges. They're legalized thieves. Wanda needs to go to jail, yes, and her conspirators, yes, but we should also realize that the banks were "in on the game" also...as long as they approved a loan and could sell it to Wall Street, they were making money. As long as Wall Street could buy the loan, insure it with AIG, and sell it to an investor, they were making money and passing the risk off. Everyone in the daisy chain was making money and passing the risk off to the next guy. When it all came down, it was apparent that the "next guy" turned out to be US! Because AIG insured all the risk and had to be saved with our tax money - the US Government bailout of the banks and AIG.
Scott Kimball November 09, 2012 at 06:36 PM
And it isn't a War on Women thing. Good Grief. If anything, women get incredibly excellent treatment under the laws in this country. And women have access to capital specifically designated for them all over the place. I can't get a loan to start a company, but a woman can. Even if I have more experience and a better idea. But a woman with an idea and no experience can get $1mm from the government or many women-only funding sources. Take your gender war message somewhere else. I'm so tired of everyone thinking they're being persecuted. Its really just all in your peraonl point of view, isn't it? Go live a positive life. Love everyone you meet. And DEAL with it.
Scott Kimball November 09, 2012 at 06:37 PM
And it isn't a War on Women thing. Good Grief. If anything, women get incredibly excellent treatment under the laws in this country. And women have access to capital specifically designated for them all over the place. I can't get a loan to start a company, but a woman can. Even if I have more experience and a better idea. But a woman with an idea and no experience can get $1mm from the government or many women-only funding sources. Take your gender war message somewhere else. I'm so tired of everyone thinking they're being persecuted. Its really just all in your peraonl point of view, isn't it? Go live a positive life. Love everyone you meet. And DEAL with it

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