A long-time international fugitive charged in Los Angeles with nine felonies for allegedly participating in a $9 million bank fraud scheme against Wells Fargo has been taken into federal custody, it was announced Thursday.
Napoleon Olarte, 41, formerly of Reseda, lived in South America as a fugitive since 2011 and was indicted by a Los Angeles federal grand jury two years ago, according to the U.S. Attorney’s Office. He was arrested Wednesday as he entered the United States at Miami International Airport, and is expected to appear before a magistrate judge in federal court in downtown Los Angeles on Thursday afternoon.
Olarte is the third and final defendant charged in the mortgage fraud scheme. Olarte’s two co-conspirators previously pleaded guilty to charges in the scheme and have served prison sentences in the case, prosecutors said.
Olarte fled to Venezuela when federal agents opened an investigation in the case, and had been living there for much of his time as a fugitive, according to the U.S. Attorney’s Office.
He relocated with his family to Uruguay in November. Shortly before his move to Uruguay, federal agents established communication with Olarte and, after numerous conversations between Olarte and federal agents between October 2018 and March 2019, Olarte agreed to self-surrender.
According to court documents, Coleman worked as a mortgage consultant at Wells Fargo while Olarte and Calle ran Fast Escrow, a rogue brokerage and escrow company in Northridge.
Between August 2008 and January 2009, Coleman accepted bribes and other favors in exchange for approving $9 million in fraudulent loans for Olarte and Calle, according to an affidavit filed with a criminal complaint in the case.
Olarte allegedly submitted fake loan applications to Wells Fargo that contained false information for borrowers’ income, assets and employment. On some of the Wells Fargo-financed loans, Olarte allegedly failed to pay off existing loan holders and failed to record liens in favor of the bank, leaving Wells Fargo with no collateral when the loans defaulted, federal prosecutors said.
Olarte has been charged with one count of conspiracy, six counts of bank fraud, and two counts of making false statements to a financial institution.
If convicted on all counts, Olarte would face up to 30 years in federal prison for each of the nine counts, according to the U.S. Attorney’s Office.