Prasad was convicted for one count of mail fraud on May 22 for defrauding a financial institution.
Indian American Mahendra Prasad, a 55-year-old man from Fremont, who was found guilty of mortgage fraud scheme, has been sentenced to 15 months and asked to pay a restitution amount of $328,000 by a US District Judge on Monday.
Prasad was convicted for one count of mail fraud on May 22 for defrauding a financial institution.
According to the Department of Justice, Prasad presented loan applications with fake statements to a financial firm in order to buy a property in Sacramento.
The judgment said the false statements filed in 2016 included statements concerning Prasad’s employer, income, and purported intention to occupy the property as his primary residence.
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The court also found that Prasad and his accomplices rented the property Section 8 housing and collected rents.
Prasad did not reside in or occupy the property as his primary residence.
Prasad in 2013 had applied to a bank to sell the property to another person at a loss to the bank.
He falsely claimed to the bank that the “short” sale was an “arm’s length” transaction and that neither he nor the buyer was related by the commercial enterprise. Prasad’s conduct caused a loss to a financial institution of approximately $328,000.
The incident of fraud came to light after an investigation was conducted by the Federal Bureau of Investigation, the Stanislaus County District Attorney’s Office, the Federal Housing Finance Agency Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General, with assistance from the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant U.S. Attorneys Henry Z. Carbajal III and Christopher D. Baker are prosecuting the case.
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Co-defendants Jyoteshna Karan, Praveen Singh, Sunita Singh and Nani Isaac are scheduled for a jury trial in U.S. District Court in Fresno, on Monday, December 11, 2017. The charges against the four remaining defendants are only allegations, so far.