Emrah Sero of Kentwood Michigan is wanted for numerous charges related to a mortgage fraud scheme and charges of bankruptcy fraud, wire fraud, mail fraud and bank fraud in two separate indictments.
Dawn Mertz, Special Agent in Charge of Internal Revenue Service Criminal Investigation, said Sero used his position as a loan officer to carry out a $4 million mortgage fraud scheme.
Mertz said Seri used his position and knowledge to “manipulate and erode our financial systems.”
According to court documents Sero played a leadership role in a $4 million mortgage fraud scheme that targeted Countrywide Home Loans and other lenders.
As part of the scheme, Sero would obtain mortgage financing to purchase homes in the names of the straw buyers by submitting fraudulent mortgage loan applications and altering documents, such as bank statements, to misrepresent the straw buyers’ assets, income and employment status, liabilities and other debts, sources of earnest money and down payments and their intent to make the property a primary residence.
Based on those misrepresentations regarding the buyers’ ability to qualify for loans, lenders issued loans that exceeded the homes’ sales prices. Once the funds were obtained from the lenders, the extra proceeds, known as “cash-back,” were directed to bank accounts that Sero controlled.
In total, Sero caused lending institutions to issue $3,745,215.00 in fraudulent loans. Out of those loan proceeds, $1,754,485.17 was directed as “cash back” to bank accounts controlled by Sero and other conspirators. Sero used the “cash-back” for personal expenses such as the purchase of luxury vehicles, jewelry, and homes in Phoenix and San Diego, to make mortgage payments and to compensate straw buyers for their involvement in the scheme. This was also done under alias name: He has connections to Las Vegas and Los Angeles
Sero also committed additional financial fraud by arranging for friends to fraudulently obtain a loan to purchase a Mercedes.