Home NEWS Police/Fire Danville Man Indicted In Mortgage Fraud Scheme

Danville Man Indicted In Mortgage Fraud Scheme

SHARE
Arbitrators award $3.7 million to former employees.

A Danville man was arrested Monday on charges he tricked banks into approving mortgage loans to unqualified buyers that resulted in $150 million in losses during the height of the nation’s financial crisis.

Ayman Shahid, 38, was arrested in Concord Monday, according to information included in a federal grand jury indictment. Charges include conspiracy to commit bank fraud and multiple counts of bank fraud. Shahid managed Discovery Sales, Inc., the sales arm for several residential construction companies including Discovery Home Builders and Albert D. Seeno Construction Co., according to the indictment.

Federal investigators said Shahid was behind a scheme to provide undisclosed incentives to unqualified home buyers which allowed Discovery to continue selling houses during the financial crisis. Shahid intentionally hid the scheme from appraisers and bank underwriters so that loans to unqualified buyers would be approved, prosecutors allege.

According to information released in Monday’s indictment, the aggregate sales price of homes affected by the scheme was almost $230 million with loans having a value of $150 million going into foreclosure or short sale proceedings.

If convicted, Shahid could face a maximum sentence of 30 years in prison, and a fine of $1,000,000, plus restitution if appropriate, for each of the eighteen violations he has been charged with, federal prosecutors said.