A federal grand jury has indicted an Ashburn man who investigators say was the mastermind behind a $7 million mortgage fraud scam.
Nadin Samnang, 29, faces up to 20 years in prison for each of the 12 counts of conspiracy and mortgage fraud charges. According to court documents, the transactions started in 2006 up until 2008 and involved more than $7 million in losses to lenders and 25 different homes from Ashburn to Woodbridge.
Samnang is accused of using his jobs as owner of NDS Title in Herndon and as a Realtor for Monorom Realty and Fairfax Realty to allegedly defraud lenders and profit from the loan proceeds, commissions and kickback payments.
The indictment states that Samnang and his co-conspirators recruited unqualified buyers who usually had good credit but not enough assets to qualify for a loan. The indictment states that Samnang would add false information on the loan applications, such as overstating how much the buyer made a month or where the buyer worked. Investigators also accused Samnang of adding the buyers’ names to a bank account he or his co-conspirators owned to make it appear as if the buyer had more assets. Samnang also allegedly created NVEST Group Inc. and used it as the source to pay buyers’ down payments and their contributions to buy property. NVEST would then get the proceeds from the fraudulent loans at closing.
In one example, Samnang bought a home on Pellow Circle Trail in Herndon for $540,000 in January 2007. He sold it to an unqualified buyer for $760,000 and was able to get the buyer approved for the loan by falsifying that she owned a professional packing company earning her $16,590 a month plus $3,500 a month in rental income, according to the indictment. Samnang then profited $196,000 from the sale.
In another example, Samnang recruited an unqualified buyer for a home he owned on South Sterling Boulevard in November 2007. Investigators accused him of adding the buyer to his personal SunTrust Bank account to make it appear as if the buyer had additional assets that helped the buyer qualify for the loan. On Dec. 11, 2007, Samnang withdrew $24,000 from his personal SunTrust account and wrote a check to NDS Title to pay for the buyer’s closing costs. He also falsified the loan application with incorrect information about the buyer’s assets and employment. The buyer paid $417,000 for the home.
To get people to buy the homes, investigators said, Samnang convinced the buyers that he would rent out the homes, refinance the buyers’ loans and sell the home soon after closing at a profit.
Samnang has not retained an attorney yet but has a court date scheduled for 2 p.m. Dec. 21. Samnang could not be reached for comment and the person who answered the phone registered to him said he did not know Nadin Samnang.