Westwood-Based Mortgage Company Targeted in Fraud Scheme Crackdown

The indictment of two managers at a Westwood-based mortgage brokerage company was part of a nationwide effort to crack down on fraud schemes that targeted distressed homeowners.

David Singui, 49, of Inglewood, and Aziz Meghji, 35, of Los Angeles, were arrested in September in a "foreclosure avoidance and equity-skimming scheme," according to the Department of Justice. The two men were the principal owner and the second-in-charge, respectively, at Direct Money Source (DMS).

More than 500 criminal defendants were charged in 285 federal cases filed in courts across the country as a result of the yearlong Distressed Homeowner Initiative, according to a DOJ press release. More than 73,000 homeowner victims were involved in the cases, with total losses estimated at more than $1 billion, according to the press release.

"Shameless con artists seeking to prey on homeowners in financial distress need to know that law enforcement is hot on their trail," United States Attorney André Birotte Jr. said in a statement. "The results of this initiative demonstrate that the combined resources of federal, state and local authorities will be brought to the table in a concerted effort to bring fraudsters to justice and protect the nation's homeowners."

The Westwood-based mortgage brokerage "allegedly operated as an equity-skimming operation that took possession of distressed homeowner’s equity under fraudulent pretenses and also defrauded mortgage lenders," according to the DOJ.

More than $15 million in loan proceeds was disbursed by mortgage lenders, of which nearly half was lost to fraud conspiracy, according to the indictment.

Kiet Truong, 27, of Hawthorne, and Starr Smith, 31, are also defendants named in the 42-count indictment.

Each of the four defendants are charged with conspiracy, wire fraud, loan fraud and aggravated identity theft. Singui and Meghji have also been charged with money laundering.

"As alleged in the indictment, DMS was an equity-skimming operation that took possession of distressed homeowner’s equity under fraudulent pretenses," according to the DOJ. "The scheme allegedly defrauded mortgage lenders in connection with loans on approximately 50 different properties."

Singui, Meghji and Truong have each pleaded not guilty.

A trial is scheduled for Nov. 6.

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