Fraud pleaded in mortgage cases

By Uriah A. Kiser

Published: September 24, 2008

Several area residents pleaded guilty to mortgage fraud in two separate cases with ties to Prince William County.

Two brothers admit taking part in a million-dollar mortgage fraud scheme, say federal prosecutors.

Mohammed Rababeh, 29, of Vienna and Ahmed Rababeh, 31, of Haymarket pleaded guilty Wednesday to conspir-ing to commit bank fraud.

Between April 2004 and September 2006, prosecutors say, the brothers received several real estate mortgage loans.

They pleaded guilty to conspiring with Randolph Baltimore, 50, of Leesburg. The three overstated Baltimore's income and omitted his liabilities so he could purchase properties they were selling.

The brothers paid Baltimore $27,000 for each property he bought after they received more than $2 million in loans.

Sentencing for the Rababehs is scheduled for Nov. 28.

In another case, Gohar Mirza of Annandale pleaded guilty Tuesday in mortgage fraud case involving at least three homes in Lake Ridge, prosecutors said.

Mirza helped straw buyers use false information to apply for mortgage loans from various lenders through his now-defunct brokerage company, E-Star. The fraud reached an estimated $2.5 million, prosecutors said.

One of the fraudulently purchased homes is at 12728 Dulcinea Place in Lake Ridge, according to court documents. The two-story, six-room home was purchased in March 2007 for more than $330,000.

Investigators said an unidentified woman who purchased the home was a real estate agent who wanted to use it as an investment property. The woman submitted a false loan application, under Mirza's direction, that asked for full financing of the property.

She told the lender, First Franklin Financial, that she earned a monthly salary of $8,000 while working as an engi-neer for a building firm. She also told the lender she was planning to live in the house, according to court documents.

She claims Mirza advised her to say the Lake Ridge property was to be her primary residence or the lender would charge her a higher interest rate, according to court documents.

The woman also failed to inform the lender she already owned another home she purchased from Mirza, according to investigators.

Investigators said the Lake Ridge property was owned by an E-Star associate other than Mirza when the woman purchased it.

E-Star brokered the home loan, which finally received full financing from First Franklin, according to court documents.

The woman also told investigators that E-Star associates said they would find renters to live in the house if she purchased the property. She said Mirza never delivered on the promise and she never actually received the keys to the house, according to court documents. The property went into foreclosure.

Another straw buyer who also collaborated with Mirza purchased seven more Northern Virginia homes, including properties on Tecumseh Court and Winona Drive, also in Lake Ridge.

A total of 11 home loans, all of which E-Star helped to broker and would eventually acquire, went into default with many ending in foreclosure, according to court documents.

Investigators said once Mirza acquired the homes he would usually sell them within two months at an inflated price. Mirza would often get $100,000 more than what he originally paid for the properties, according to court documents.

Mirza faces a maximum of 20 years in prison and a fine of $250,000.

Mirza must also reimburse nine mortgage lenders up to $7 million as part of a restitution agreement.

Staff writer Uriah Kiser can be reached at 703-878-8065. The Associated Press contributed to this report.