A former Los Angeles County Sheriff’s Department deputy will spend 3 1/2 years in federal prison for his role in an $11 million Eastern Jackson County mortgage fraud scheme.
Arman Nshanian, 38, of Corona, Calif., was sentenced Monday to three years and six months without parole and was ordered to pay $785,926 in restitution by U.S. District Judge Greg Kays.
A jury convicted Nshanian at trial on Dec. 6 of conspiracy to commit wire fraud and two counts of wire fraud related to fax transmissions and emails that were sent across state lines during the mortgage application process. Nshanian also committed perjury when he testified in his own defense during the trial, so the court ruled that he obstructed justice, which carries an enhanced sentence.
Nshanian was one of nine defendants in the case. Two Blue Springs real estate agents were sentenced in May for their roles in the scheme. Leann R. Turner, 44, of Blue Springs, to three years in prison without parole and ordered her to pay more than $4.9 million in restitution, while Carole L. Colson, 71, of Lake Worth, Fla., who formerly ran Carole Colson Real Estate in Blue Springs, was sentenced to five years of probation, which includes six months of house arrest and 120 hours of community service, and was ordered to pay nearly $2.29 million in restitution.
James A. Nash, also of Corona, Calif., and a former L.A. sheriff’s deputy, was also convicted along with Nshanian. He is scheduled to be sentenced on Aug. 12.
Also previously sentenced in the case were Bruce Q. Williams, 44, of Kansas City, Kan.; Anthony E. Hicks, 42, of Little Rock, Ark.; Linda Joyce Henry Johnson, 65, of Corona, Calif.; Mark P. Bailey, 40, of Buena Park, Calif., and Zelda Ann Jackson, 41, of Newbury Park, Calif. All received prison time except Colson and Johnson.
According to court records, the defendants participated in a mortgage fraud conspiracy from early 2005 to August 2006. Lenders made more than $11 million in loans on 16 residential properties in Blue Springs, Independence, Oak Grove, Lee’s Summit, Liberty and Parkville. From that amount, buyers allegedly received more than $2 million from the loan proceeds in illegal kickbacks. The scheme also resulted in a financial loss of nearly $5 million to mortgage lenders.
Turner served as a real estate agent working for a series of real estate companies during the conspiracy. She served as the real estate agent in 15 of the 16 transactions and received commissions and some hidden payments and assets in exchange for listing the homes and selling them at inflated prices.
Turner and Colson listed the houses, sought buyers and sold them at inflated prices. Turner and Colson made misrepresentations and omissions of facts to mortgage lenders to obtain the loans. Home buyers then created false businesses that issued invoices that claimed they had provided work or services in exchange for loan funds, and received a $100,000 kickback for each purchase.
Nash fraudulently purchased two homes in Blue Springs and received $100,000 for each. Nshanian fraudulently purchased a home in Lee’s Summit and received $100,000 for it.