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Jul. 12, 2008
Copyright © Las Vegas Review-Journal

Five plead guilty for roles in mortgage fraud that brought $17 million in losses

By JOHN G. EDWARDS
REVIEW-JOURNAL

The ongoing investigation of the Southern Nevada Mortgage Task Force resulted in guilty pleas from five defendants charged in a scheme that caused $17 million in bank losses, U.S. Attorney Gregory Brower announced Friday.

"These guilty pleas mark a significant step toward unraveling a large and complex mortgage fraud centered in Southern Nevada," Brower said in a statement. "The investigation is ongoing."

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    • Eva Mazzarella, a Las Vegas mortgage broker; her husband, Steven Grimm; and four other defendants are awaiting trial on conspiracy and fraud charges alleging they participated in a scheme that involved straw buyers, fraudulent mortgage loan applications and shell companies.

    Grimm and Mazzarella led a scheme that included 432 straw buyer transactions involving properties purchased for $107 million, according to prosecutors. The government said 143 of the 227 properties are in default and caused an estimated $17 million in losses at banks.

    The U.S. attorney's office Friday said five defendants pleaded guilty to criminal offenses relating to the scheme.

    Daicy Vargas, 23, of Las Vegas pleaded guilty to misprision of a felony, or concealing or failing to report a felony. She admitted that she helped Grimm divert proceeds of the fraud and failed to report the fraud as soon as possible.

    Pleading guilty to conspiracy were Benjamin Labee, 27, a mortgage loan processor; and his wife, Shauna Labee, a mortgage agent, both of Salt Lake City. The Labees admitted that they conspired with Grimm to recruit straw buyers to pose as property purchasers. The Labees said they put false information in loan applications so that applicants could qualify for loans.

    Craig Christians, 39, a Las Vegas real estate broker, pleaded guilty in June to misprision of a felony. Christians admitted that he allowed his company Western Pacific Funding to be used as a conduit for the fraud.

    Robert Samora, 41, a Las Vegas mortgage agent, pleaded guilty to money laundering.

    The FBI and Internal Revenue Service criminal investigators are leading the investigation. Other federal, state and local agencies are assisting as members of the Southern Nevada Mortgage Task Force.

    People with information about mortgage fraud are asked to call the mortgage fraud hot line at 584-5555.

    Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

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    jerry wrote on October 18, 2008 07:08 PM: Has the trial started yet?


    TimeRanger wrote on July 12, 2008 08:33 PM: "...estimated $17 million in losses at banks"

    Isn't this just a way for the banks to "say" they lost money? Afterall, can't they sell the houses that they now own??


    roger wrote on July 12, 2008 04:05 PM: Yeah, they got to plead guilty. In other words got a high priced attorny and worked out a plea bargain. As I sit here and watch the investment I made in my house disappear one day after the next I can't help but think these people are as bad a predator to society as anyone. Think about it, their activities inflated property values as much as anyone. Everybody who bought homes over the last few years were victims. And I can only wonder what happened to all the money? Let's see, $17m in bank losses that these people have hidden in foreign accounts. They plead guilty, serve a few years at best, pay a nominal fine and some legal fees..thye head out of the country to enjoy life. Throw these people in the slammer forever, or until they return ALL the money. Can anyone sue them in a civil court for fraudulently inflating home prices? what if a buyer can somehow prove their purchse price was inflated because the comps used were fraud deals?


    money wrote on July 12, 2008 02:49 PM: Nestor C- you mean, will Lenders ever learn? LOL I suppose you are thinking of the adage: "history repeats itself" wow!

    Then again, seems the lenders were lied to. I suppose they can do more to VERIFY the information given to them! I would!!


    Nestor C. wrote on July 12, 2008 12:53 PM: Happened all the time in the '80's in Houston. One guy got 200 homes, never paid a dime, rented them out. Foreclosure took 7 months, renters got thrown out, he got the money. Yes, he got caught, but they never found the money. Will government ever learn?


    D Jones wrote on July 12, 2008 08:43 AM: How they'd get these people to plead guilty? Who does this in this day and age? We've seen killers with a smoking gun in their hands say "they didn't do it", and get a trial. I'm amazed.


    Anthnony wrote on July 12, 2008 07:01 AM: Lock them up for life...the majority of problems the US is facing right now are due to the housing crash...