BROKER CONVICTED OF CONSPIRACY WITH BOYFRIEND AND HIS BROTHER TO COMMIT $17.5 MILLION IN REAL ESTATE FRAUD BY PURCHASING HOMES USING STOLEN IDENTITIES AND INTENTIONALLY DEFAULTING ON LOANS

OCDASeal

Orange County District Attorney
Press Release


Tony Rackauckas, District Attorney
401 Civic Center Drive West
Santa Ana, CA 92701

For Immediate Release
Case # 09CF1208


 


 
May 18, 2010

Susan Kang Schroeder
Chief of Staff
Office: 714-347-8408
Cell: 714-292-2718

Farrah Emami
Spokesperson
Office: 714-347-8405
Cell: 714-323-4486

BROKER CONVICTED OF CONSPIRACY WITH BOYFRIEND AND HIS BROTHER TO COMMIT $17.5 MILLION IN REAL ESTATE FRAUD BY PURCHASING HOMES USING STOLEN IDENTITIES AND INTENTIONALLY DEFAULTING ON LOANS

*Co-defendant boyfriend and brother have warrants for their arrest

 

WESTMINSTER – A real estate broker was convicted today of conspiring with her boyfriend and his brother to commit $17.5 million in real estate fraud by purchasing 35 properties using stolen identities and intentionally defaulting on loans in order to steal the loan money.  Kathy Chen, 49, Westminster, was found guilty by a jury of 136 felony counts including one count of conspiracy, 47 counts of grand theft, one count of attempted grand theft, 37 counts of forgery, 27 counts of recording false documents, 15 counts of identity theft, one count of elder financial exploitation, four counts of forging an official seal, and three counts of filing false tax returns. The sentencing enhancements for causing loss in excess of $2.5 million and $100,000 were found true. Chen faces a sentence up to 111 years in state prison at her sentencing July 9, 2010, in Department W-9, West Justice Center, Westminster.

 

Chen’s boyfriend, Richard Salgado Gonzalez, 60, and his brother, Daniel Gonzalez, 57, face the same charges and sentence as Chen. Fugitives Richard and Daniel Gonzalez have outstanding arrest warrants. Both may currently be living in Puerto Vallarta, Mexico.

 

The People presented the following information to the jury during the trial against Chen:

 

Chen worked as a real estate broker and owned several businesses including Chen Financial, Western Escrow, Nationwide Tax Services and SBC Financial. She conspired with her then-boyfriend, Richard Gonzalez, and his brother, Daniel Gonzalez, to commit over $17.5 million in fraud by using the identities of unsuspecting or unqualified victims to obtain mortgage loans for the purchase of multiple properties. Chen and her co-defendants recruited these victims in order to hide their own identities. These victims often spoke little or no English, were unemployed or had limited incomes, and had no intention of ever residing in or repaying any loan on properties in their names.

 

Between Jan. 13, 2005, and July 10, 2007, the defendants obtained 47 fraudulent loans from 13 lenders on 35 properties in excess of $17.5 million through the use of the fraudulently obtained identities. These properties included 13 in Orange County, 16 in San Bernardino County, and six in Kern County. The defendants are being prosecuted in Orange County for all 35 properties.

 

The defendants used the fraudulently obtained personal and credit information of some of the fake buyers, including a 92-year-old woman, on several occasions withou