22 Aug 2014
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Patch Instagram photo by jwgartin
Patch Instagram photo by jwgartin

Loan Fraud, Conspiracy Convictions for Ashburn Man

Federal investigators continue to investigate the case, which involved multiple properties in Northern Virginia and other conspirators.

Loan Fraud, Conspiracy Convictions for Ashburn Man

A federal jury on April 27 convicted Ashburn resident Nadin Samnang, 29, for his role in fraudulent mortgage loan transactions that cost lenders more than $7 million, according to the U.S. Department of Justice.

The case against Samnang— a District of Columbia real estate developer who formerly worked as a realtor with Monorom Realty and Fairfax Realty—involves at least 25 homes in northern Virginia.

The conviction—conspiracy, nine counts of wire fraud and two counts of mail fraud—carries a maximum penalty of 20 years for each count. U.S. District Judge Gerald Bruce Lee set a sentencing date for July 20. Samnang was indicted Dec. 13, 2011.

Samnang, who also owned a title company, engaged in a scheme from 2006 to 2008 to defraud mortgage lender and profit from loan proceeds, commissions and bonus payments, according to information provided by the DOJ.

According to the Justice Department:

  • Samnang and other members of the conspiracy recruited unqualified buyers as real estate purchasers.
  • The conspirators falsified mortgage applications, created fake documents to support the applications and made it appear as if the buyers possessed sufficient assets.
  • Samnang profited by flipping properties he or his family members owned to unqualified buyers with the promise to help them flip the properties after a short time.
  • When kickbacks given to the unqualified buyers were exhausted, they defaulted and the properties went into foreclosure.
  • Samnang also arranged cash-out refinances for borrowers, retaining most loan proceeds and paying kickbacks to the loan officer who processed the fraudulent loan.

According the DOJ, the U.S. Postal Inspection Service and the FBI's Washington Field Office continue to investigate the case.

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