Nine Southland residents were among 11 defendants arrested Thursday on federal charges accusing them of participating in a $6 million fraud scheme that targeted homeowners, many of whom are elderly and had their identities stolen.
In the first stage of the scheme, fraudulently obtained personal identifying information of homeowners was used to create counterfeit identification documents. Email accounts in the victims’ names were then registered to impersonate them.
Using the phony ID documents and email addresses, the defendants allegedly misrepresented themselves as the victims’ agents, brokers, representatives or relatives, and submitted bogus applications to private money lenders for cash loans secured by the victims’ properties in Santa Monica, Hollywood, Hollywood Hills, Westwood and Chinatown, court papers show.
Fabricated bank statements, rental agreements, doctors’ notes and death certificates were presented to lenders. Upon receiving closing documents, defendants caused the papers to be fraudulently notarized and signed by individuals supposedly representing the victims, prosecutors contend.
Private money lenders relied on the false statements, misrepresentations, and certifications to cause funds to be disbursed via check and wire to mailboxes and bank accounts allegedly controlled by the defendants.
A dozen persons were named in the 15-count indictment filed last month in Los Angeles federal court. Lead defendant Nazaret “Nico” Chakrian, 65, of Hollywood, is charged with conspiracy to commit wire fraud and seven counts of wire fraud. He also faces aggravated identity theft and money laundering conspiracy charges.
The total intended loss in the case is nearly $17.4 million, while the actual loss is about $6 million, federal prosecutors said.
“The defendants didn’t just steal identities, they used those stolen identities to secure high-value real estate loans, fabricate financial documents and move millions of dollars through a maze of fraudulent businesses and funnel accounts,” Tyler Hatcher, special agent in charge, Internal Revenue Service-Criminal Investigation’s Los Angeles Bureau, said in a statement.
“Our agents traced every wire, every transfer and every shell account to expose the financial backbone of this conspiracy,” he said. “This indictment sends a clear message, IRS CI will dismantle the money pipelines that allow complex fraud schemes to flourish, and we will hold accountable those who profit from exploiting our financial system.”