A San Diego real estate broker and his wife, a mortgage broker, where charged with conspiracy, fraud and money laundering in a multimillion-dollar scheme that allegedly targeted low-income immigrant homebuyers.
Eric Elegado owns Real Estate & Loans and E Real Mortgage Inc. in Mira Mesa, which is about 17 miles north of San Diego. His wife, Charmagne Elegado, worked as an account executive at New Century Mortgage. Seven others have been charged, as well.
According to the indictment, the defendants acquired mortgages for unqualified buyers by turning in false loan applications that lied about the employment and earnings of the applicants. They also allegedly created fake W-2 forms, bank statements and other documents to support the forged applications.
They then submitted the applications to mortgage lenders, including New Century Mortgage, to secure about $50 million in loans. This led to a $15 million loss for the lenders.
The scheme occurred from 2002 to 2007 and the indictment was returned Feb. 2.