L.A. woman sentenced to 3 years in federal prison for mortgage fraud

August 21, 2014

LOS ANGELES (CNS) – A Los Angeles woman convicted of submitting phony loan applications to acquire four properties worth more than $2 million was sentenced today to three years in federal prison.

A federal judge also ordered Soo Kyung Hong, aka Maria Hong, 48, resident of the Miracle Mile section, to pay $2 million in restitution, which includes losses from four additional properties fraudulently purchased in a related scheme.

Hong pleaded guilty in April to conspiracy to commit wire fraud, admitting that she falsified income and employment information to obtain mortgages to purchase four properties in Hesperia, Laguna Niguel, and Hacienda Heights.

As part of the scheme, Hong engaged a co-conspirator to falsely list the co-conspirator’s company as a place of employment on the fraudulent mortgage applications, which were filed under the name of a person who did not know their name was being used, according to the U.S. Attorney’s Office.

Hong instructed the co-conspirator to direct calls seeking employment verification to her.

Banks funded mortgages on four properties, all of which fell into foreclosure and caused losses of more than $1 million, federal prosecutors said.