California Broker Sentenced to 68 Years in Prison for Real Estate Fraud
Kathy Chen, an Orange County real estate broker, was sentenced last week to 68 years in California state prison for committing $17.5 million worth of real estate and mortgage fraud between 2005 and 2007. Chen’s charges of California real estate and mortgage fraud included 136 felony counts involving allegations of conspiracy, grand theft and forgery.
Chen, her boyfriend and his brother…who are believed to be hiding in Puerto Vallarta, Mexico…conspired to commit this fraud by using stolen identities to purchase 35 properties where they would intentionally default on the loans and ultimately collect more than $17 million in proceeds.
California’s laws regarding mortgage and real estate fraud are far reaching. Penalties include substantial fines (that often include paying back victim restitution), lengthy prison sentences, and…if you are a state licensed real estate agent or broker…the potential (and probable) loss of your professional license.
