A Bay Space actual property mogul with political ties has been convicted of two prices together with fraud for mendacity about debt owed by a borrower in a $1.3 million refinance mortgage from Quicken Loans.
Victor Makras, 64, of San Francisco, was discovered responsible by a federal jury final week for falsely inflating a $915K debt he claimed a refi borrower owed him, in line with the U.S. Legal professional’s Workplace for the Northern District of California.
The proprietor of actual property agency Makras Actual Property and Makras Traders was on quite a few metropolis commissions and had long-running ties to metropolis management, in line with native studies. His conviction is an element of a bigger federal probe into native corruption together with actual property fraud that has already entangled different public officers.
A jury was unable to succeed in a verdict on two conspiracy counts for Makras. The borrower, former San Francisco Public Utilities Fee basic supervisor Harlan Kelly, faces the identical 4 counts and has but to go to trial.
Kelly and his spouse, a former San Francisco metropolis administrator who wasn’t named in a superseding indictment final October, in 2012 borrowed $715K in an interest-only personal mortgage from Makras, prosecutors wrote within the indictment. The mortgage was secured by the couple’s residence and two different items of property.
In 2014, Kelly allegedly requested Makras for a further $200K to money out, and Makras submitted a purported $200K modification to the 2012 mortgage, with the identical 8% rate of interest. Kelly and his spouse submitted a refi software to Quicken Loans falsely stating the unpaid stability on their mortgage from Makras was $915K, the indictment stated. They allegedly omitted from Quicken one other $70K private mortgage from Makras and a $89K building debt to a contractor.
Makras faces as much as 30 years in jail and a $1 million high quality for every rely he was convicted of. He is out of custody till a sentencing date which is but to be decided, prosecutors stated.
Fraud has skyrocketed within the mortgage trade lately. The speed of vital defects on mortgage functions hit a document final yr, whereas actual property scams value non-bank originators $4.66 per greenback of fraudulent transactions. The influence of fraud is even harsher on banks, which spend $5.34 for each greenback of fraud.