Alexander Romaniolis, 48, has been arrested in Huntington Beach for his involvement in a mortgage fraud scheme that involves properties in Rocklin and Roseville. A Sacramento federal grand jury returned a three count indictment on March 21, 2013 charging the Irvine man with mail fraud. The indictment was unsealed after his arrest.
According to Lauren Horwood of the United States Attorney’s Office in Sacramento, Romaniolis recruited five straw buyers to purchase eight residential properties in Rockville, Roseville, and San Clemente. He allegedly assisted the buyers in providing false information to lenders about their job status, income, assets, and intent to occupy properties as primary residencies. According to authorities the straw buyers claimed to be executives of companies controlled and created by Romaniolis.
Romaniolis is reportedly responsible for the origination of more than $5 million in residential mortgage loans in this scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.
The indictment sprang from an investigation by the Federal Bureau of Investigation and the California Attorney General’s mortgage fraud task force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorney Jean M. Hobler and Special Assistant United States Attorney Jeffrey A. Spivak are prosecuting the case.
If convicted of mortgage fraud, Romaniolis faces up to 30 years in prison and a $1 million fine. Any sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.