Ashburn Man Gets 7 Years for Mortgage Scam
Former Realtor and developer convicted for conspiring with others to defraud lenders of more than $7 million.
U.S. District Judge Gerald Bruce Lee today sentenced Nadin Samnang, of Ashburn, to seven years in prison and another three of supervised released for orchestrating a mortgage fraud scheme that resulted in more than $7 million in losses for lenders.
Samnang, 29, was indicted in December 2011. A jury convicted him in April of conspiracy, nine counts of wire fraud and two counts of mail fraud. On July 19, Judge Lee also ordered Samnang to pay restitution to the lenders involved and to forfeit to the United States nearly $1 million in proceeds from his unlawful actions.
The former Realtor and Washington, DC, developer engaged in a scheme from 2006 to 2008 that involved at least 25 Northern Virginia homes and defrauded mortgage lenders, according to information provided by the U.S. Department of Justice. Samnang also owned a title company and at one point worked with Monorom Realty and Fairfax Realty.
According to the Justice Department:
- Samnang and other members of the conspiracy recruited unqualified buyers as real estate purchasers.
- The conspirators falsified mortgage applications, created fake documents to support the applications and made it appear as if the buyers possessed sufficient assets.
- Samnang profited by flipping properties he or his family members owned to unqualified buyers with the promise to help them flip the properties after a short time.
- When kickbacks given to the unqualified buyers were exhausted, they defaulted and the properties went into foreclosure.
- Samnang also arranged cash-out refinances for borrowers, retaining most loan proceeds and paying kickbacks to the loan officer who processed the fraudulent loan.
An investigation by the U.S. Postal Inspection Service and the FBI’s Washington Field Office continues. Assistant United States Attorneys Paul J. Nathanson and Kosta S. Stojilkovic are prosecuting the case.