Fugitive Northridge Mortgage Broker Faces Prison In Fraud Scheme

LOS ANGELES, CA — A former long-time international fugitive faces sentencing Monday in Los Angeles for his role in a multi-million dollar bank fraud scheme against Wells Fargo.

Napoleon Olarte, 42, formerly of Reseda, lived in South America as a fugitive since 2011 but was indicted by a Los Angeles federal grand jury two years ago, according to the U.S. Attorney's Office.

Olarte is the third and final defendant charged in the mortgage fraud scheme. His two co-conspirators -- Juan Jose Calle and Nancy Karina Coleman -- previously pleaded guilty to federal charges and have served brief prison sentences in the case, prosecutors said.

Olarte -- who pleaded guilty to conspiracy to commit bank fraud -- fled to Venezuela when federal agents opened an investigation in the case, and lived there for much of his time as a fugitive, according to the U.S. Attorney's Office.

He relocated with his family to Uruguay in November 2018. Shortly before his move to Uruguay, federal agents established communication with Olarte and, after numerous conversations between Olarte and federal agents between October 2018 and March 2019, Olarte agreed to surrender.

According to court documents, Coleman worked as a mortgage consultant at Wells Fargo while Olarte and Calle ran Fast Escrow, a rogue brokerage and escrow company in Northridge.

Between August 2008 and January 2009, Coleman accepted bribes and other favors in exchange for approving millions in fraudulent loans for Olarte and Calle, according to an affidavit filed with a criminal complaint in the case.

Olarte submitted fake loan applications to Wells Fargo that contained false information for borrowers' income, assets and employment. On some of the Wells Fargo-financed loans, Olarte failed to pay off existing loan holders and failed to record liens in favor of the bank, leaving Wells Fargo with no collateral when the loans defaulted, federal prosecutors said.

City News Service