Chatsworth Residents Sentenced for $20 Million Mortgage Fraud

Three Chatsworth residents who owned or managed foreclosure rescue companies were sentenced Monday for their roles in a $20 million mortgage fraud, the Department of Justice announced. Dorothy Matsuba, 67, received a sentenced of 20 years in prison for wire fraud, identity theft and other charges; her daughter Jamie Matsuba, 33, received a sentence of about 11 years for wire fraud; and her husband Thomas Matsuba, 67, was sentenced to 14 years for wire fraud. According to evidence presented at trial, between 2005 and 2014, the Matsubas ran a scheme to defraud financially distressed homeowners by offering to prevent foreclosure on their properties through short sales. Instead, they rented the properties to third parties, did not pay the mortgages on the properties, and submitted false and fraudulent documents to mortgage lenders and servicers to delay foreclosure. Also, the conspirators obtained mortgages in the names of stolen identities. The defendants also used additional tactics, including filing bankruptcy in the names of distressed homeowners without their knowledge and fabricating liens on the distressed properties. Other defendants include Jane Matsuba-Garcia, 42, of Camarillo, who previously pleaded guilty and is awaiting sentencing. Young Park of Los Angeles is a fugitive. In related cases, Jason Hong, 36, of Chatsworth, and Ryu Goeku, 48, of Canoga Park previously pleaded guilty and are awaiting sentencing. The case was investigated by the FBI, IRS, Federal Housing Finance Agency, the U.S. Attorney’s Office for the Central District of California and the L.A. County Sheriff’s Department.