Four accused of mortgage fraud scheme

Feb. 14--A San Diego County grand jury has indicted four people in a roughly $2 million mortgage fraud scheme that the state Attorney's General's Office said victimized 40 people who'd sought mortgage help.

The four defendants face multiple charges -- 194 counts -- related to the scheme, which involved using a fake insurance company that promised home loan services, the Attorney General's Office said in a news release announcing the indictments Tuesday.

Officials said the victims had sought loans to help pay off mortgages, and many of them lost their home and savings. Many victims are Latino or African American families. The alleged scheme took place in five Southern California counties, including San Diego.

Between 2012 and 2017, the four alleged conspirators worked to delay foreclosures and evictions by filing bankruptcy and other court documents under fictitious names, according to the indictment, the Attorney General's office said.

Authorities said the victims made payments to the defendants, and when the promised loan failed to come through, they would move ahead with the fabricated filings.

One of the defendants is accused of posing as an attorney, purportedly to help victims -- who were also charged for "attorney services," according to the news release.

All four were charged with grand theft, filing false or forged documents in a public office, conspiracy to commit those offenses, and identity theft, as well as special allegations for aggravated white collar crime.

Two of the four -- Jemal Lilly and Mark Bellinger -- were arrested Jan. 30 and since have pleaded not guilty. The other two -- Andrew Valles and Arnold Millman -- remain at large. Ages and cities of residence for the four were not immediately available.

"The perpetrators of this mortgage fraud stole the life savings of decent Californians," said Attorney Xavier General Becerra in the statement announcing the indictment. "It's too common a story with all-too-common tactics."

In the same statement, Insurance Commissioner Dave Jones called the case "evidence that insurance fraud is not a victimless crime."

"These suspects allegedly deceived dozens of victims to the tune of over $2 million, leaving them uninsured and at great financial risk," Jones said.

The arrests came after a joint investigation between state and federal authorities and agencies.

teri.figueroa@sduniontribune.com

(760) 529-4945

Twitter: @TeriFigueroaUT

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