Our California Statewide Law Enforcement Association (CSLEA) members with the California Attorney General's Mortgage Fraud Task Force worked together with the FBI to arrest a former Sacramento area loan officer in Huntington Beach.

Alexander Romaniolis, 48, of Irvine was arrested for mortgage fraud, Monday, March 25.  A three-count indictment alleges Romaniolis orchestrated a scheme that resulted in more than $5 million dollars in mortgage loans for properties that all ended up in foreclosures.

According to the indictment, Romaniolis recruited five straw buyers to buy eight homes in Roseville, Rocklin and San Clemente.  He allegedly assisted the buyers by providing false information to lenders about their employment, income, assets and intent to occupy properties as primary residences.  In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. 

 "Our CSLEA members in the AG's Mortgage Fraud Task Force help to uncover unscrupulous individuals who will stop at nothing to make a buck," said CSLEA President Alan Barcelona.  "This type of mortgage fraud  hurts those straw buyers who may be innocent pawns in the scheme and hurts the economy.  We all know what the mortgage meltdown has done to our economy."

If convicted, Romaniolis faces a maximum statutory penalty of 30 years in prison and a $1 million fine.