Three Bay Area real estate professionals have been sentenced to federal prison for their involvement in a $55 million mortgage fraud conspiracy. Tjoman Buditaslim, Jose De Jesus Martinez, and Jose Alfonso Tellez received sentences of 24 months, 14 months, and 12 months respectively from Senior U.S. District Judge Charles R. Breyer.
The three individuals, along with Travis Holasek, were indicted in November 2023 on charges of conspiracy to commit wire fraud and wire fraud. They all pleaded guilty to the charges.
Court records reveal that from 2018 through 2022, Buditaslim orchestrated approximately 102 home loans worth over $55 million using false information. His actions included submitting fraudulent loan applications and income details to secure loans for clients who otherwise would not qualify. The Federal Housing Administration (FHA) incurred losses of about $486,484.38 due to these fraudulent activities.
Martinez's plea agreement shows he directed clients to Buditaslim knowing false information would be used for loan approvals. He earned nearly $590,000 in commissions from about $27.7 million worth of loans obtained through this scheme.
Tellez, working as a loan officer at a mortgage company, helped originate around 30 loans valued at more than $17 million based on falsified information. Despite his responsibility to flag such applications, he facilitated the process and earned over $134,000 in commissions.
"Today’s sentences hold the defendants accountable for their conduct," stated United States Attorney Ismail J. Ramsey.
Herminia Neblina from the Federal Housing Finance Agency Office of Inspector General emphasized the importance of protecting potential homeowners: "Justice was served today."
Acting Special Agent-in-Charge Joshua Stockman highlighted the risk posed by such frauds: "When individuals commit fraud against federally funded programs...it limits the financial resources available."
Stephen M. Sherwood of the U.S. Postal Inspection Service acknowledged collaborative efforts in bringing those responsible to justice.
In addition to imprisonment terms, each defendant received three years of supervised release and restitution orders: Buditaslim ($1,393,018.46), Martinez ($840,847.35), and Tellez ($858,321.67). Their sentences will commence on February 3, 2025. Holasek's sentencing is set for December 4, 2024.
The case was prosecuted by Assistant United States Attorney Christiaan Highsmith with assistance from Lance Libatique following an investigation by FHFA-OIG, HUD OIG, USPIS, and the California Department of Justice.