SAN FRANCISCO (BCN) — A federal grand jury in San Francisco accused a prominent real estate broker and investor of bank fraud related to making false statements to banks and fraudulent misrepresentations made in mortgage refinance loan applications. was found guilty of
The announcement was made on Friday. The verdict against Victor McLass follows his two-week trial before Chief Justice Richard Seaborg of the United States District Court.
Macrath, 64, of San Francisco, was charged on a replacement indictment filed on May 31. The four criminal charges relate to refinancing of mortgages acquired by McRaths associates and the associates’ wives.
These four counts charged McRath with conspiring to make false statements to the bank. Make false statements to the bank. Collusion in bank fraud. and bank fraud. A jury found him guilty of two charges of making false statements to banks and bank fraud.
The jury was unable to reach a verdict on two other counts, conspiracy to make false statements to banks and conspiracy to commit bank fraud. According to court evidence, McRath defrauded Quicken Loans, a financial institution, with a $1.3 million real estate mortgage loan secured by a property owned by a McRath associate who was the borrower of the loan.
In applying for a $1.3 million loan, McRath presented Quicken Loans with a falsely inflated debt of $915,000 that McRath claimed the borrower owed McRath and his investors. Accidentally inflated debt allowed the borrower to hide other debts from his Quicken.
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Other outstanding debt included more than $89,000 owed to a contractor for a major refurbishment work on a property that was offered to the borrower without contemporaneous billing. was a $70,000 unsecured personal loan made by Macrath to the borrower.
The case is part of a larger federal investigation into public corruption in the city and county of San Francisco. So far, 12 people have been charged, including San Francisco official Mohammed Nur, who was sentenced to seven years in federal prison yesterday.
Contractors and facilitators in multiple cities were also indicted.
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