Matsuba Mortgage Fraudster Family Members To Serve 45 Years In Prison
Three members of a mortgage fraudster family will spend more than 45 years in federal prison. The Matsuba family ran a $20 million mortgage fraud scheme that preyed on financially distressed homeowners for nearly a decade.
Dorothy Matsuba will serve 20 years. Whereas, her husband, Thomas Matsuba, and her daughter, Jamie Matsuba, each received a sentence of more than 10 years in jail for taking part in the nearly decade-long scheme.
The mortgage fraudster family ran a 10-year long foreclosure prevention scam that defrauded financially distressed homeowners. The Matsubas offered short sales as a way to stop a foreclosure.
However, the Matsubas never executed the short sales. They and others rented out the properties to other people and did not pay the mortgages on the subject properties. In addition, the mortgage fraudster family submitted fake documents to mortgage servicers to delay the pending foreclosures.
Furthermore, the evidence showed that the Matsubas ran an “interlocking web” of companies. They would frequently conduct business under the names of Ownership Management Service and Trust Holding Service.
The Matsubas also used stolen identities to take out mortgages. The mortgage fraudster family also filed bankruptcy in the names of distressed homeowners without their knowledge. The Matsuba family members would also place fake liens on the distressed properties.
Matsuba Mortgage Fraudster Family Goes Prison
Dorothy Matsuba pleaded guilty in early December 2017 to a laundry list of crimes. Matsuba pleaded guilty to one count conspiracy to commit wire fraud and false statements to a federally insured bank or mortgage lending business. She also pleaded guilty to six counts of identity theft and five counts of wire fraud.
Jamie Matsuba and Thomas Matsuba were convicted of conspiracy to commit wire fraud and making false statements to banks. They were also found guilty of committing identity theft and making false statements to federally insured banks.
Dorothy Matsuba received a sentence of 240 months. Jamie Matsuba received a sentence of 135 months in federal prison. Thomas Matsuba received a sentence of 168 months in federal prison. They also face three years of supervised release upon exiting prison.
Dorothy Matsuba’s daughter, Jane Matsuba-Garcia, previously pleaded guilty and is awaiting sentencing.
Dorothy Matsuba’s brother, Young Park faces one count of conspiracy to commit wire fraud, make false statements and commit identity theft. According to the DOJ, Park is a fugitive.