A hard money lender and former Tacoma business owner who resides in University Place was arrested by the FBI today after being indicted by the grand jury for conspiracy, making false statements on loan applications and mail fraud.
Emiel A. Kandi was to make his initial appearance on the indictment in U.S. District Court in Tacoma at 2:30 today.
According to the indictment, between 2008 and 2009, Kandi submitted false information to obtain home mortgage loans. Some of these loans were designed to let him cash out of properties that he owned through his hard money lending.
Kandi’s lending activities were typically secured by a borrower’s home and charged a high rate of interest. The hard money loans were structured, in some instances, to allow him to seize control of a home if the borrower missed a single payment. Other loans included an inflated and often disguised commission payment to him.
In at least 19 loans, Kandi and his co-schemers submitted false information regarding the borrowers’ employment, salary and intention to live in the home.
Some of the loan paperwork included inflated appraisals so that he could maximize the money he obtained in the scheme. The false statements were designed to make the loans appear legitimate and ensure that they would meet federal lending standards.
The indictment details the false statements that were made in loan applications on properties in Kent, Puyallup, Roy, Gig Harbor and Vancouver. In one instance detailed in the indictment, the falsified forms were sent to a lender in Texas via U.S. Mail resulting in the charge of mail fraud.
Many of the loans were processed by Pierce Commercial Bank, which was later closed by authorities, and were insured by the Federal Housing Administration (FHA), a unit within the federal Department of Housing and Urban Development.