A real estate professional from Daly City has entered a guilty plea in a San Francisco federal court for his involvement in a large-scale mortgage fraud scheme. The Department of Justice announced that Tjoman Buditaslim, 52, confessed to orchestrating a wire fraud conspiracy that defrauded loan companies of more than $55 million. The complex fraud involved fake documents, including divorce decrees and bank statements, used to inflate income for mortgage loan applications. In a revelation found in court records, Buditaslim's fraudulent activities, which spanned four years, also led to losses for the Federal Housing Administration (FHA).
Alongside Buditaslim, three of his associates were also implicated in the scheme. Jose Tellez, 27, of San Jose, and Jose de Jesus Martinez, 59, of Daly City, both pled guilty to wire fraud. Travis Holasek, 51, of San Francisco, still awaits further court proceedings. According to the Department of Justice, Tellez, a former loan officer, admitted to knowingly originating around 30 fraudulent loans worth over $17 million and earning commissions from these transactions. To further deceive lending institutions, Buditaslim and his co-conspirators are said to have prepared thoroughly and submitted the fraudulent materials necessary to secure the loans.
United States Attorney Ismail J. Ramsey emphasized the gravity of the defendant's crimes, stating, as per the Department of Justice, "These defendants used their professional knowledge of the mortgage industry to perpetrate a fraud on unsophisticated home buyers, funneling these victims into loans for which they were not qualified". The case, which resulted from a multi-year investigation, highlights the risks and vulnerabilities within the mortgage industry, especially as they pertain to government-funded programs like those of the FHA.
Authorities pointed out that individuals held key positions in the mortgage process and used these roles to execute their fraudulent plans. "The defendants took advantage of their knowledge and training in the mortgage industry to circumvent the rules and abused the positions of trust they held as real estate professionals and gatekeepers of FHA-insured loans to line their own pockets," stated HUD-OIG Special Agent-in-Charge Mark Kaminsky, as cited by the Department of Justice. Despite having the duty to uphold industry standards and honesty, these real estate professionals chose instead to engage in deceptive practices for personal gain at the expense of the integrity of the market and unwary homeowners, as observed by FHFA-OIG’s Herminia Neblina.
Due to their actions, Buditaslim, Tellez, and Martinez now face a maximum statutory penalty of 20 years in prison, significant fines, and restitution. Their sentencing is scheduled for October 30 before Senior U.S. District Court Judge Charles R. Breyer. The case against these conspirators is being prosecuted by the U.S. Attorney’s Office, with Christiaan Highsmith leading the charge, backed by Lance Libatique and Aarian Beti team. Holasek is expected to appear in court for a status conference on November 6.
