The long arm of the federal law knows no boundaries within the confines of the United States as a former deputy of the Los Angeles County Sheriff’s Department recently found out.
Arman Nshanian, 38, of Corona, Calif., was sentenced July 7 by U.S. District Judge Greg Kays to three years and six months in federal prison without parole for his role in an $11 million mortgage fraud scheme that included property in Lee’s Summit.
The court also ordered Nshanian to pay $785,926 in restitution.
According to the office of Tammy Dickinson, United States Attorney for the Western District of Missouri, Nshanian was convicted last December at trial of conspiracy to commit wire fraud and two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process.
During the trial, Nshanian committed perjury when he testified in his own defense. As a result of Nshanian’s false testimony, the court ruled that he obstructed justice, which warranted an enhanced sentence.
Co-defendant James Arthur Nash, Jr., 44, also of Corona and also formerly a sheriff’s deputy, was also convicted at trial of his role in the criminal conspiracy. Nash also was found guilty of four counts of wire fraud. He is scheduled to be sentenced Aug. 12.
Nshanian and Nash are among nine defendants who participated in a mortgage fraud scheme from early 2005 through Aug. 4, 2006. Mortgage lenders made loans of approximately $11,092,886 on 16 residential properties in Lee’s Summit, Liberty, Blue Springs, Parkville, Independence and Oak Grove. From that total, unbeknownst to the lenders, buyers received approximately $2,006,845 in secret illegal kickbacks from the loan proceeds. The scheme resulted in a financial loss to mortgage lenders of nearly $5 million.
Seven co-defendants have pleaded guilty and been sentenced.
The scheme involved buying and selling homes at inflated prices, obtaining mortgage loans at the inflated prices, then kicking back $100,000 of the excess loan proceeds to each of the home buyers without the lenders’ knowledge. The scheme financially benefited all of the conspirators, federal prosecutors said.