Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Realtor accused of $50 million fraud scheme, own parents allegedly victims

In a widespread fraud scheme, Eric and Charmagne Elegado who are well known in California, have been accused of getting rich fraudulently.

Multi-million dollar mortgage fraud scheme

The U.S. Attorney General’s office has arrested well known San Diego Realtor, Eric Elegado, his wife Charmagne Elegado and seven employees for allegedly defrauding banks and buyers of over $50 million, ultimately costing banks $15 million, according to Fox 5 San Diego. All nine defendants have plead not guilty.

UPDATE: March 2014, the couple is sentenced to over three years in jail each, apologize in court, and next up, restitution hearings will take place in May 2014.

The federal prosecutors unsealed the indictment today, alleging the couple used fraudulent documents to satisfy mortgage underwriting to falsely obtain home loans for buyers that could not actually afford the loans being secured.

The indictment says 100 buyers between 2002 and 2007 were unqualified and the team at E Real Estate and Loans, Inc. owned by Eric Elegado knowingly filed falsified documents, mostly for poor immigrants, a scheme the prosecutors call predatory. The scheme was allegedly masterminded by Charmagne Elegado who worked at New Century Mortgage and made sure the loans were approved.

Advertisement. Scroll to continue reading.

Defrauding their own parents

Indictment papers claim that almost all of the loans generated through the conspirators have defaulted, including Charmagne Elegado’s parents who Fox 5 says lost $75,000. The couple and their co-defendants are charged with conspiracy to commit mail fraud, mail fraud, conspiracy to commit money laundering and four counts of money laundering which defendants could face up to 17 years in prison each while Charmagne may face over 20 years in prison.

“Mr. and Mrs. Elegato have strictly denied any participation in any criminal behavior,” said Paul Pfingst, who is representing Eric Elegato, “(They) are not rich people. The prosecution would have you believe they made millions of dollars.” Pfingst takes issue with the prosecutors not pursuing charges until just before the statute of limitations ended, but the rush could be to pursue the case prior to that time.

Sources tell AGBeat that the couple is well known for taking expensive trips, a luxury home, hundreds of thousands of dollars of jewelry and matching Rolls Royce Phantom cars which if true conflicts with Pfingst’s assertions to the Fox News cameras.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business News

(FINANCE) An anti-trust lawsuit against major players in the residential real estate industry sheds light on misinformation and misunderstandings about commissions - when you're...

Social Media

(SOCIAL MEDIA) Facebook is updating its trends page as another step in its revamping process.

Business Marketing

(MARKETING) Opcity is the Austin startup making big changes to the ways that lead generation happens in real estate.

Business Marketing

(MARKETING) Whether an anomaly or the new normal, publishers are seeing diminished reach with text content on this popular site.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.