Danville Man Arrested on Suspicion of Defrauding Wells Fargo out of $1.2 Million Mortgage

The CEO of a Danville-based real estate investment company was arrested Friday on suspicion of illegally unloading himself from his $1.2 million mortgage, the Contra Costa County District Attorney's Office announced Monday.

The man has been charged with conspiracy, forgery, burglary, passing insufficient fund checks and attempting to file false documents. He faces a maximum sentence of five years and eight months. Bail is set at $100,000.

The man was a real estate agent until his license expired in 2010. The district attorney's office said the man purchased a five bedroom, three bath Danville home with a $1.2 million mortgage in 2005. In 2011, Wells Fargo moved to foreclose the home. The man then filed a fraudulent Deed of Full Reconveyance, which released the man of the mortgage.

In addition, the district attorney's office believe the man briefly opened and closed a checking account with US Bank in 2011. After the account was closed, he sent Wells Fargo a check for about $1.5 million. The check bounced for insufficient funds.

"This office will prosecute anyone who deceives victims and businesses of their hard-earned money in any real estate fraud scheme," Contra Costa County District Attorney Mark A. Peterson said. "We will not tolerate swindlers nor financial predators in our community.”

The man is being prosecuted by the Real Estate Fraud Unit of Contra Costa County.

Editor's note: The name of the suspect has been redacted from the article. The suspect was prosecuted on a lesser offense.

Photo courtesy Renee Schiavone/ Patch