Eight Charged in Mortgage Fraud Scheme

Eight people, including one from Roseville, have been charged with conspiracy to commit mail fraud in connection with a mortgage fraud scheme.

Wednesday, a federal grand jury in Sacramento returned an indictment charging Alexander Kokhanets, 34, of Roseville; Valeri Mysin, 31, of Citrus Heights; Angela Shavlovsky, 52, of Sacramento; Nikolay Katinskiy, 28, of Lynwood, Wash.; Michael Kennedy, 44, of Miami Beach, Fla.; Boris Murzak, 38, and Zinaida Murzak, 40, both of Sacramento; and Vitaliy Tuzman, 31, of West Sacramento.

The scheme involved seven foreclosed homes that were purchased at escalated prices, more than their worth, in order for the defendants to receive cash at the close of escrow, according to court records. The purchase resulted in more than $1.8 million in losses for mortgage lenders, according to a release from the Department of Justice.

Katinsky and Kennedy were also charged with money laundering in connection with the scheme.

After the lenders funded the fraudulent loans, the indictment alleges that the defendants diverted a portion of the proceeds from the inflated sales price directly to themselves and to businesses controlled by the defendants and others.

If convicted, the defendants could face a maximum penalty of 20 years in prison for conspiracy to commit mail fraud, 10 years in prison for money laundering, and a $250,000 fine.