September 22, 2015
Las Vegas, NV – Nevada Attorney General Adam Paul Laxalt announced that Christopher Nelson, 46, of Henderson and Niket Kulkarni, 38, of Los Angeles, CA were indicted by the Clark County Grand Jury on charges of pattern of mortgage lending fraud and racketeering, among others. The defendants operated their business, the American Equity Foundation, between July 2012 and May 2013.
According to the indictment, the defendants are accused of soliciting customers to participate in a short sale program associated with the federal government called the Neighborhood Stabilization Plan. Defendants falsely represented to their clients that their business could facilitate the short sales of customers’ homes to investors. Clients were also told that they could then lease their homes from the investors for a period of time, before having the opportunity to repurchase those homes at a cost of 90-100% of the home’s market value. Through these representations, the defendants are alleged to have unlawfully obtained more than $133,000 from their clients.
“Indictments such as these set a precedent that fraudulent behavior will not be tolerated and will be aggressively pursued,” said Laxalt. “Mortgage fraud can have devastating effects on homeowners and the economy, and my office will hold accountable those who unlawfully collect fees from homeowners using false promises of solutions.”
Special Agent in Charge James Todak of the Housing and Urban Development’s Office of the Inspector General (HUD-OIG) added, “Our office continues to be vigilant in protecting FHA insured borrowers from those in the mortgage industry willing to defraud them through foreclosure rescue schemes. This prosecution with the Nevada Attorney General’s Office demonstrates our commitment to protecting HUD’s important work in providing affordable home ownership.”
Nelson and Kulkarni are scheduled for initial appearances before the Eighth Judicial District Court on October 5, 2015.
This case was investigated by the HUD-OIG and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP). Senior Deputy Attorney General Raya Swift and Deputy Attorney General Michael Kovac are prosecuting the case. An indictment is merely a charging document; every defendant is presumed innocent until and unless proven guilty in a court of law.
To read the criminal indictments for Nelson and Kulkarni, click on their respective links. To file a complaint about someone suspected of committing a fraud, click here.