California Attorney General Announces Sentencing in $2 Million Mortgage Fraud Scheme

In a shocking revelation, California Attorney General Xavier Becerra announced the sentencing of Andrew Valles for orchestrating a $2 million mortgage fraud scheme that targeted vulnerable families throughout Southern California. Valles was handed a hefty 13-year prison sentence, with a restitution order of $2,342,957. His co-defendant, Arnold Millman, was previously sentenced to three years and four months behind bars.

The elaborate scheme, which unfolded between 2012 and 2017, involved the use of a fake insurance company called “SafeCare” to lure primarily Latino and African American families into believing they were securing affordable home loan services. The defendants would then manipulate the victims by filing false bankruptcy and court documents under fake names, leading them to deposit illegal advance fees and payments into a bank account controlled by the fraudsters. When the promised loans failed to materialize, the defendants would proceed with the fraudulent filings, leaving families in financial ruin.

Attorney General Becerra condemned the actions of Valles and his accomplices, stating, “These con artists stole the life savings of decent Californians who thought they were making a smart decision for their homes and their families. These actions will not be tolerated.” He reassured the public that his office would continue to crack down on those who exploit hardworking Californians for personal gain.

The successful prosecution of Valles and Millman was the result of a collaborative effort between the California Department of Justice, the California Department of Insurance, and the Federal Housing Finance Agency Office of the Inspector General. A third co-defendant, Jemal Lilly, has already pled guilty and is awaiting sentencing on September 4, 2019.

The sentencing of Valles serves as a stark reminder of the importance of remaining vigilant against fraudulent schemes that target unsuspecting individuals and families. The swift and decisive action taken by law enforcement agencies sends a clear message that such criminal behavior will not go unpunished.