Tjoman Buditaslim, 52, of San Francisco; Jose De Jesus Martinez, 59, of Daly City; and Jose Alfonso Tellez, 27, of San Jose were sentenced today for their involvement in a mortgage fraud conspiracy that resulted in over $55 million in fraudulent loans, according to the U.S. Attorney’s Office for the Northern District of California.
Buditaslim, a former real estate broker whose license was revoked in 2019, masterminded the scheme between 2018 and 2022. He originated 102 home loans by submitting fraudulent loan applications using false income information and fabricated documents, including fake divorce decrees, alimony checks, and bank statements. His actions allowed clients who wouldn’t have otherwise qualified to secure loans.
The fraudulent loan activity caused significant financial losses, including $486,484.38 incurred by the Federal Housing Administration (FHA), which had to step in to prevent foreclosures.
Martinez, a licensed real estate agent, played a crucial role by referring clients to Buditaslim, fully aware that fraudulent loan applications would be used. He received nearly $590,000 in commissions after Buditaslim secured 49 loans totaling $27.7 million for Martinez’s clients.
Tellez, a loan officer at a mortgage company, processed around 30 fraudulent loans worth approximately $17 million. Despite noticing false income information, he knowingly facilitated the loans and earned over $134,000 in commissions.
The trio’s actions resulted in a significant $55 million mortgage fraud that endangered the viability of federally funded homeownership programs. The investigation was carried out by the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General.
The defendants were sentenced as follows: Buditaslim received 24 months in prison, Martinez was sentenced to 14 months, and Tellez received 12 months for their roles in the fraud scheme. The scheme severely undermined homeownership opportunities for eligible Americans, as fraud committed against federally funded programs limits the resources available to assist hardworking citizens.