Sacramento Real Estate Agent Faces 20 Years in Prison for Mortgage Fraud

One northern California real estate agent might be forced to get comfortable in a small jail cell after being convicted of mortgage fraud.

Behrooz Badie, 53, a Sacramento real estate agent, was found guilty Wednesday of 13 counts of mail fraud following a six-day mortgage fraud trial in federal court.

Badie, with co-defendants Derek Davis and Dino Rosetti (both previously pleaded guilty), cooked up a scheme to defraud mortgage lenders and operated it for about 18 months before being caught, according to the evidence presented at trial.
Badie acted as the buyer’s real estate agent for the purchase of 16 residential properties by four straw buyers. Rosetti served as the mortgage broker for 15 of the purchasers, and Davis orchestrated the scheme.

With Badie’s assistance, Harriette Davis, Derek Davis’s ex-wife, purchased six homes. Kristina Harvey, Mr. Davis’s girlfriend, purchased five. William Emmons, an elderly friend of Mr. Davis, purchased four. Alan Bolton, a person to whom Mr. Davis owed money, bought one.

Each of the purchase agreements drafted by Mr. Badie indicated the offer was being submitted by one of the foregoing buyers who intended to occupy the property as his or her primary residence.

But that wasn’t part of the plan, testimony revealed.

For his part, Badie received more than $260,000 in commissions.

Badie is scheduled to be sentenced by U. S. District Judge Edward Garcia on Aug. 28. He faces a maximum statutory penalty of 20 years in prison.