California Man Gets 15 Months In Prison For Mortgage Fraud In Obtaining Home Loan, Then Subsequently Making False Claims That Proposed Short Sale Was An Arms' Length Transaction, Resulting In $328K Loss For Bank

From the Office of the U.S. Attorney (Fresno, California):

• Mahendra Prasad, 55, of Fremont, was sentenced today [August 14] by U.S. District Judge Lawrence J. O’Neill to 15 months in prison and ordered to pay $328,000 in restitution for his role in a mortgage fraud scheme, U.S. Attorney Phillip A. Talbert announced.
  
  On May 22, 2017, Prasad pleaded guilty to one count of mail fraud affecting a financial institution. According to court documents, in 2006, Prasad caused loan application packages that contained false statements to be submitted to a mortgage lender in order to buy a property in Sacramento. The false statements included statements concerning Prasad’s employer, income, and purported intention to occupy the property as his primary residence. Following his fraudulent purchase, Prasad, with the assistance of others, rented the property as Section 8 housing and collected rents. Prasad did not reside in or occupy the property as his primary residence.
  
  In 2013, Prasad 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 were related by commercial enterprise. Prasad’s conduct caused a loss to a financial institution of approximately $328,000.

Source: Bay Area Man Sentenced to Prison for Participating in Mortgage Fraud Scheme Involving Sacramento House.