Eleven people, including two foreign nationals, were arrested on Mar. 19 in Los Angeles following a federal indictment that accuses them of stealing the identities of elderly victims to fraudulently obtain millions of dollars in loans secured by residential properties.
The case highlights concerns about title fraud and its impact on homeowners and lenders, particularly elderly individuals whose personal information was allegedly used without their knowledge. The U.S. Attorney's Office for the Central District of California said the defendants face significant prison time if convicted.
According to the indictment, from January 2021 to May 2023, members of the group obtained personal identifying information from elderly property owners in areas such as Santa Monica, Hollywood, Westwood, and Chinatown. They allegedly created fake identification documents and email accounts to impersonate these victims when applying for hard money loans from private lenders. The indictment states that false documents—including bank statements and death certificates—were submitted to support fraudulent loan applications.
First Assistant United States Attorney Bill Essayli said, “There is no shortage of massive fraud occurring within California. Today’s operation represents one of many sophisticated schemes used by criminals – including foreign nationals – to defraud U.S. citizens and taxpayers of their hard-earned property. Those days are over under this U.S. Department of Justice. These defendants will be facing significant prison time for their charged conduct.”
Akil Davis, Assistant Director in Charge at the FBI's Los Angeles Field Office, said, “The growing problem of title fraud victimizes homeowners and lenders, many of whom are elderly and have their identities stolen, in addition to their hard-earned money.” Tyler Hatcher from IRS-CI Los Angeles Field Office added that agents traced financial transactions through shell accounts: “Our agents traced every wire, every transfer, and every shell account to expose the financial backbone of this conspiracy.”
Authorities estimate that the intended loss was approximately $17.4 million with actual losses around $6 million. Interim Glendale Police Chief Robert William said investigators worked closely with federal partners: “Their focus and determination ensured those responsible are held accountable and that justice is delivered.”
If convicted on all counts—including conspiracy to commit wire fraud, aggravated identity theft, and money laundering—the defendants could face up to 20 years in federal prison per count plus mandatory additional sentences for identity theft.
The case is being investigated by several agencies working together as part of the Eurasian Organized Crime Task Force (EOCTF), which includes local police departments as well as federal agencies such as the FBI and IRS Criminal Investigation.
The U.S. Attorney's Office for the Central District of California supports community outreach through programs focused on victim assistance and public education according to the official website. The office serves more than 19 million residents across seven counties according to its official website and focuses on prosecuting federal criminal cases while handling civil matters for the government according to its official website. E. Martin Estrada has held the position of United States Attorney for this district according to its official website. The office works with federal, state, and local law enforcement partners to ensure public safety according to its official website.
