OPERATION HOMEWRECKER – FBI and IRS Announce Indictment of 19 in MORTGAGE FRAUD Related Offenses!

Every day there is more being reported about Mortgage Fraud. It is widespread and will take years to determine just how costly and extensive the problem is. Meanwhile, people, innocent people, are duped into losing their homes by falling for scams that are still widespread.

According to the FBI and IRS, 19 individuals were indicted for mortgage fraud-related offenses under Operation Homewrecker. The leader of this nationwide scam is Charles Head, 33, of Los Angeles, California, who targeted homeowners in dire financial straits, fraudulently obtaining title to over 100 homes and stole millions of dollars through fraudulently obtained loans and mortgages.

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According to the FBI: “From approximately January 1, 2004 to March 14, 2006 , the defendants contacted desperate homeowners, offering two “options” allowing them to avoid foreclosure and obtain thousands of dollars up-front to help pay mounting bills. If the homeowner could not qualify for the “ first option,” which virtually none could, they would be offered the “second option.” Under the latter option, an “investor” would be added to the title of the home, to whom the homeowner would make a “rental” payment of an amount allegedly less than their mortgage payment, thereby allowing the homeowner to repair their credit by having the mortgage payments made in a timely fashion. Unfortunately all of this was a scam. The defendants would recruit straw buyers as the “investors” and oftentimes these individuals would in fact replace the homeowners on the titles of the properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants. Once the straw buyer had title to the home, the defendants immediately applied for a mortgage to extract the maximum available equity from the home. The defendants would then share the proceeds of the ill-gotten equity and “rent” being paid by the victim homeowner. When the defendants ultimately would sell the home, stop making the mortgage payment, and/or pursue an eviction proceeding, the victim homeowner was left without their home, equity, or repaired credit.”

The following defendants were charged in the February 28, 2008 “Head One” indictment: Charles Head, 33, of La Habra, California; Jeremy Michael Head, 30, of Huntington Beach, California; Elham Assadi, aka Elham Assadi Jouzani, aka Ely Assadi, 30, of Irvine, California; Leonard Bernot, 51, of Laguna Hills, California; Akemi Bottari, 28, of Los Angeles; Joshua Coffman, 29, of North Hollywood; John Corcoran, aka Jack Corcoran, 52, of Anaheim; Sarah Mattson, 27, of Phoenix, Arizona; Domonic McCarns, 33, of Brea, California; Anh Nguyen, 36, of Los Angeles; Omar Sandoval, 32, of Rancho Cucamonga, California; Xochitl Sandoval, 29, of Rancho Cucamonga; Eduardo Vanegas, 28, of Phoenix; Andrwe Vu, 39, of Santa Ana; Justin Wiley, 28, of Irvine; and Kou Yang, 32, of Corona, California.

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“Head Two” involved an “equity stripping” scheme, netting approximately $5.9 million in stolen equity from 68 homeowners in states across the nation. While still targeting distressed homeowners and defrauding mortgage lenders through the use of straw buyers, this time Charles Head altered the scheme so that he would receive approximately 97 percent of the stolen equity, while his “sales agents” and employees, and the other defendants, would receive either the remaining 3 percent of equity or a salary from the fraudulently-obtained funding.

Instead of recruiting friends and family members as straw buyers, as in “Head One,” in “Head Two” the defendants recruited strangers via the Internet. They also used referrals from mortgage brokers to identify and solicit new victim homeowners. Beyond advertising on the Internet, the defendants also would send “blast faxes” to mortgage brokers throughout the country and generate mass emails to potential victims. Through material misrepresentations and omissions, victim homeowners would be offered what appeared to be their last best chance to save their homes. Unfortunately, as in “Head One,” these victims also were left without their homes, equity, or repaired credit.

On March 13, 2008, the federal grand jury returned a five-count indictment in “Head Two” against seven defendants, including Charles Head, John Corcoran, Kou Yang, each also charged in “Head One,” as well as Keith Brotemarkle, 42, of Johnstown, Pennsylvania; Benjamin Budoff, 41, of Colorado Springs, Colorado; Domonic McCarns, 33, of Brea; and Lisa Vang, 24, of Westminster.

A question has been raised as to whether there would be a nationwide Mortgage Task Force. It looks like California has taken the lead in this regard. In recent months, an Eastern District of California Mortgage Fraud Task Force has been established. This action was taken as a result of the significant increase in reported mortgage fraud as economic conditions and the housing market have worsened. Members of the task force include representatives from the U.S. Attorney’s Office, FBI, IRS-CI, the Department of Housing and Urban Development, the United States Bankruptcy Trustee’s Office, and the California Department of Real Estate.

“Mortgage fraud is a very real problem, both legally and economically. Federal law enforcement here in the Eastern District is fully committed to holding responsible those who in their greed have stolen from their fellow citizens. It is our duty to do all we can to restore faith and confidence in the marketplace by placing these thieves where they belong: in prison.” stated U.S. Attorney Scott.

Every choice has a consequence. As a white collar crime and business ethics speaker, I speak from first hand experience about the truth about consequences. Reality is – no one escapes the consequences of their choices. While Head and others may have looked good for a time and avoided the consequences – they did not avoid the consequences all together. Prison is no fun and Head and other are facing 10++ years plus substantial restitution for a conviction in this case. Likely they will serve time and that will prove to be a dramatic change from their prior activities. You do reap what you sow.

If anyone reading has any background on Head and his co-defendants or was defrauded by them – feel free to comment as I study the behaviors and backgrounds of those convicted of white collar crime.

White Collar Crime Speaker – Chuck Gallagher – signing off…

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42 Responses to OPERATION HOMEWRECKER – FBI and IRS Announce Indictment of 19 in MORTGAGE FRAUD Related Offenses!

  1. sylvia says:

    I was in the process of purchasing my home in april 2005 when getting ready to close I realize that someone ran my credit without my authorization. So finding out it was Kou Yand at Head Financial Services I called and asked why? She indicated that her cpa was sent a letter from IRS asking to verify my social security number since I had hung my license with him years prior. Didn’t make sense so I asked for proof to be faxed to me. So when I receive fax it was all rigged up cut and paste job with mistakes with dates. I contact Charles and he didnt want to hear it. So it was very disturbing that they can just get away with that. I’m very glad they got caught however feel sorry for the children they will leave behind

  2. L. says:

    I worked for him a few years ago and they were shady back then. I know a few people in the case, Charles, Mike, Kou, Omar and his wife, Sarah, Lenny… the list goes on! I also know of criminal records that one of them has. It is sad to see what money can do to people. They were money hungry then and as I can tell, they are money hungry now. You do reap what you sow. I am so glad I left his company when I did. It was a company that gave you a bad feeling. I would be sitting at my desk and the sheriff would come in to serve him. Not once… not twice… but several times. he also tried opening bank accounts under different names… he got in trouble for that as well. He is just not a nice person… I feel sorry for the children that are involved with this.

  3. WILLIAM HAIRSTON says:

    I believe that I am a victim.
    How can I get more information.
    How can I get the government to look at my case.

  4. Contact the US Attorney’s office in California and talk with them. You can find them by google searching for – us attorney news release. The first listing – click on and follow the letter to “C” and search the California US Attorneys…

    Chuck

  5. BW says:

    Funny thing is….I went to high school with them. I ran track with Jeremy “Mike” Head. I feel sorry for their mother.

  6. r. swanson says:

    I am proof that their schemes are far reaching. I live in NJ. They stole my family home from me. They took advantage of me while I was sick. This house was built by my family for my family 47 years ago and has always been ours. Charles and his group stole my future and my past. They got almost 200k in equity from my home. I don’t know what will happen to my mother and me. We are both disabled and this stress has escalated our health conditions. I am not someone who is looking for a free ride with my mortgage. I did everything right. They flat out lied. They faked all of the documents.

    While I see that some of you are sorry for their children think about this. They have lived a life of indulgence funded by innocent people like myself. They are going to learn the hard way that the people who they looked up to and who are suppose to take care of them also cheated and lied to them. So now they will see first hand what that lifestyle really cost. It may be a blessing for those kids not to have such a negative influence around them. I wish the best for all of the innocent people involved in this case. The criminals and their family’s are just the tip of the iceberg as far as people whose life was altered by their actions.

  7. Gary says:

    I was one of these third party helpers. I thought I was helping these people keep from loosing their houses with my good credit I could bail them out and make a little money on my good credit standing. boy was I stupid, got letters of Foreclosure and eventually it destroyed my credit rating. I hope they lock up Mr. Head and throw away the key for what he did to all of us

  8. Gary says:

    I was a third party also, destroyed my credit to. Gary is there anything we can do?

  9. Carla Walters and James Walters says:

    To Mr. Chuck Gallagher, Hello! We are victims of Charles Head, Jack Corcoran, Kou Vang Funding Forclosures.com, Longbeach Mortgage, and right now Deutches Bank/ Chase Bank. The entire Mortgage is a Fraud. We never saw The Paytons, The check was less than the original offer. They stripped my home of 119.000 + I lost my family over this.And our health has suffered. The Atty General of Eastern disdrict of California,I.R.S.-C.I., F.B.I. ,the Prosecutors in this case , Like Matthew Stegman, my victims advocate Miss Senta Parker.Sean Vasser, head of the department Helen Tennete and my Atty James Smith have all said we are the victims, we need restitution. I am looking for my friend and honest broker Mr. Lindsey Williams. IF you know where he is please have him contact me. I’m very worried about him.

  10. SB says:

    From what I read online, the cases are being dismissed. Everyone is urged to contact the prosecutor regarding this. Here is his information:

    Michael Dwight Anderson , GOVT
    United States Attorney’s Office
    501 I Street
    Suite 10-100
    Sacramento, CA 95814
    916-554-2755
    Fax: 916-554-2900
    Email: michael.d.anderson2@usdoj.gov

  11. Jason says:

    The cases against Mr. Head are set to be dismissed on October 6th. Check online using pacer.gov. It seems the government did not have a case against them due to contracts each homeowner signed granting title to Mr. Head and his associates. I spoke to Mr. Anderson at the US Attorney’s office in Sacramento at the number above (916.554.2755). Keep us posted if you hear anything, please.

    Jason

  12. Fellow Victim says:

    Too Jason:
    I just spoke with Mr Andersons Office and they indicated that in fact the Oct 6th Motion whcih has now been moved to Oct 20th is the Defence side trying to get it droped. f by some chance the judge sides with the defence. The US attornet plans on re filing the case. Have no fear Mr Head is going down.

  13. jstevenson says:

    I understand that the statue of limitations has already ran on this case. Once dismissed for “Speedy Trial Act” violations, it cannot be tried again.

    Also, After quizzing the prosecutor in more depth, I found out that the judge has the option to restrict the prosecution from EVER even attempting to prosecute these guys again since the government violated some law passed by congress. In any case, I don’t think Mr. Anderson (the prosecutor) has been upfront with us when we call. If you can, call him and quiz him on the specifics of this case. It doesn’t seem very strong.

    They will be free forever IF they actually committed a crime (there was no formal trial). Why didn’t Mr. Anderson tell me the truth… that once dismissed WITH PREJUDICE, they cannot even attempt another prosecution. Why did they violate the law in the cases? It seems that the government did not have enough evidence of any wrongdoing to get more than a simple indictment in over 5 years. Sounds like another case of another overzealous prosecutor.

  14. jstevenson says:

    Oh. The hearing has been moved again. The new date on the hearing to dismiss the case is now 11/9/2011 in Sacramento in the federal courthouse. Please post here if anyone gets any update on this.

  15. Case has been dismissed… Speedy Trial Act violation

  16. The prosecutor violated the Speedy Trial Act.

    Call him…
    Michael Dwight Anderson
    United States Attorney
    501 “I” Street
    Suite 10-100
    Sacramento, CA 95814
    916-554-2755

    michael.d.anderson2@usdoj.gov

  17. Geez. How many of us had our rights violated by Charles, Domonic and Keith. There were about 325 homeowners and 100 buyers.

  18. Charles Christopher says:

    as of may 2012 charles head is living in pittsburgh pa. running an escort service called 69 entertainment under the name Charles Christopher.. lives in FREE goverment section 8 housing. on welfare. he is NOT in jail. Charles Christopher look him up on face book.

  19. Biff Bashon says:

    I think this guy is a fraud and although I forgive him, he will pay for this injustice. I lost everything and for him to post here what he posted, is thumbing his nose and flipping us all off. He got away with it and if the prosecutors weren’t asleep at the wheel, he would have paid hard for this. Charles Head, or Charles Christopher, whoever you want to be called, I don’t want to treat you with more dignity than you deserve, but because I know that’s what God wants me to do, I’ll do it. But you know you deserve to have a very harsh punishment. And I’m being kind to leave unprofessional and vulgar language out of this post. But what ought to happen to you will be taken up with the Lord. And he will give out justice, unlike our government.

  20. C. Green, Esq. says:

    I looked up Charles Head and other aliases (based on what I read on this blog) It seems he was operating a Home Healthcare business in Pittsburgh somewhere call Home Healthcare Group.

    Another thing I saw on Facebook says he lives in La Habra, Ca in a home on Citrus Drive (Orange County. Yet another report says he is in South Beach, Florida outside of Miami. Lastly, I heard he lives in Rio (Brazil). Does anyone here actually know where this guys is? I’m trying to make contact regarding a home he purchased and I have no address. I was told he is a licensed mortgage and real estate broker in numerous states so I assumed that meant I could look him up but I couldn’t find anything.

    I sincerely doubt I’ll find him on the welfare roles of any state as stated above because it makes no sense that a millionaire would be on welfare. Can either Charles Christopher’s above verify any address? I looked up 69 Entertainment and it’s some New York business:

    http://newyork.citysearch.com/profile/33066608/new_york_ny/star_69_entertainment.html/

    I don’t think that’s him. Please help if you know how I can reach this guy. Thanks .

  21. Biff Bashon says:

    It’s him. Trust me, he knows how to defraud just about every one, including the government. We have reason to believe that he put his millions in a Cayman account and that he has other holdings that could very well be hidden. That’s how he gets welfare.

  22. Investigator Sommercamp says:

    Seems he lives in GA now. I found him on fb. Anyone else know more information? https://www.facebook.com/charles.head.560

    So now he is “on welfare”, in Pittsburgh, In CA, in Brazil, in Manhattan New York and has millions buried overseas. Does anyone have valid information? I want to sue him and I cannot seem to find a state or even a residence address. I was a homeowner that used to pay rent to his business after selling my home.

    If he was on welfare, I could easily find him by doing a skip trace. We have been unable to do so which means the welfare rolls do not include the subject.

  23. Jamie Flowers says:

    I found Mr. Head in Europe with a lot of properties. Seems he is doing the exact same thing as before in a different country. Here is more info on it. Hope this helps:

    http://www.primelocation.com/for-sale/branch/charles-head-kingsbridge-14666/

    Maybe he used his millions to buy property overseas?

  24. Nikki says:

    Nope he was in Pittsburgh first he lived with his parents then with his girlfriend who was on section 8. Now he’s been arrested for his new business which was called 69entertainment. Even though there were some charges dropped because of speedy trial he was recently convicted of a bunch of charges in CA so with his posts on here I just wanna say whose laughing now?

  25. Charles Is In Jail says:

    It gets better
    Weeks After Mortgage Fraud Conviction, Defendant Charged Again
    http://mortgagefraudblog.com/2-weeks-after-mortgage-fraud-conviction-defendant-charged-again/

  26. Hi. I have news about “Operation Homewrecker” The cases were spit into Head1 and Head 2. In may of 2013 the judge found Charles Head Jeremy Head, Bejamin Budoff,Dominic Mc Carns guilty of mortgage fraud. Jack Corcoran plead guilty. Lisa Vang will be sentenced on OCt. 16 2013. Keith Bromarkle to be sentenced on Oct. 23 2013. The atty for prosecution are asking for restitution for the victims in both these cases. Head case 2 goes to court on Oct. 21 2013. Following the conviction Head was on Bail. One month later he was arrested in PA. In Moon county for running a prostitution bus. He was extradicted to California no bail till the other case goes to court. I heard this from Senta Parker United States Atty. Generals office in Eastern California. Contact her at916 554 2783 or email senta.parker@usdoj.gov. She will verify this. Not only is this going on in California,We are fighting in Cook County against the Banks of Deutches/Chase and Longbeach. We have fought since 2005.

  27. sharryl says:

    what happens to those that they took money from and those who lost their homes

  28. HI, THE JUDGE IS BEING ASKED TO MAKE FINANCIAL RESTITUTIONS FOR THE THOUSANDS OF VICTIMS IN THIS CASE. Head 2 is now being argued in California. We have had our house bought on an sherrifs sale by Deutches Bank,Chase,and Longbeach on Oct 15 2013.All while the criminal case continues in California. It is a fraud Mortgage and we will continue to fight in court for my family home. I speak with Senta Parker and she is interviwing Wittnesses for Head Case 2 right now. We may have to testify in California in this case. Do not give up! We will not!!

  29. Juror says:

    I was on the Jury and we convicted him of the Crimes…He will be going away for a long time.

    • Carla says:

      Dear juror I thank you. We were victims of homewrecker and we are still fighting in criminal court. If you read this contact Senta Parker US ATTY victims advocate at916 554 2783. Give her your name and phone ask her to pass it to me please. Carla Walters. Thank you.

  30. JeanLee says:

    He got 35 years. Hopefully, the other defendants get sentenced soon.

  31. sharry says:

    as of now I heard that they are all sentenced except Anh Negyen do to the special physic report. And do we start getting our restitution.

  32. I am asking about the restitution to be paid back ton the victums

  33. Peggy Haley says:

    Charles Head scammed my husband and I out of our home. He promised us a mortgage only to find out he took our name off the title and put a friend of his named Michael Mattice of Colorado on it. We sent what we thought was mortgage payments to him only to learn he was not making the mortgage payments. He kept the money. The FBI contacted us to let us know we were victims of a scam. We have a judgement against Charles Head. We are now trying to find out how to collect on this judgement. If anyone knows how we can please please let us know. We are not able to hire another lawyer to do so. Any help would be appreciated. Charles Head is in prison now in Cumberland Maryland.

  34. Carla Walters says:

    Was hacked in bank and email .Have repaired it now. Continue to recive letters from victims unit of Eastern California about the criminals of Operation Homewrecker being locked up. And judge asking for restitution. Meantime in illinois we fight civil case against Chase/ and Deutches as well as Longbeach bank. We are fighting for quiet title and relief. To date we have had no heat for 10 monthsand counting. They pound away at us and we fight back. I have spoken to my lawyer the gov. Atty general FTC and the county commissioner of Cook county. We will not give up. Please continue to fight. This is fraud. And enough is enough.

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