A federal jury on April 27 convicted Ashburn resident Nadin Samnang, 29, for his role in fraudulent mortgage loan transactions that cost lenders more than $7 million, according to the U.S. Department of Justice.
The case against Samnang— a District of Columbia real estate developer who formerly worked as a realtor with Monorom Realty and Fairfax Realty—involves at least 25 homes in northern Virginia.
The conviction—conspiracy, nine counts of wire fraud and two counts of mail fraud—carries a maximum penalty of 20 years for each count. U.S. District Judge Gerald Bruce Lee set a sentencing date for July 20. Samnang was indicted Dec. 13, 2011.
Samnang, who also owned a title company, engaged in a scheme from 2006 to 2008 to defraud mortgage lender and profit from loan proceeds, commissions and bonus payments, according to information provided by the DOJ.
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.