SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Erik Hermann Green, 37, of Roseville, guilty on Tuesday of three counts of wire fraud in a mortgage fraud scheme, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around October 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses.
This case is the product of an investigation by the IRS Criminal Investigation and the Alameda County District Attorney’s Office. Assistant U.S. Attorneys Michael D. Anderson and Miriam R. Hinman are prosecuting the case.
Co-defendants Stephen Pirt and Janis Pirt previously pleaded guilty to wire fraud. Stephen Pirt was sentenced in 2015 to 25 months in prison and in 2014, Janis Pirt was sentenced to five years of probation with a year of home detention.
Green is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on June 13. Green faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.