An Alexandria insurance agent has been charged with wire and mail fraud in connection with a scheme that raised at least $1.5 million in mortgage loans and caused at least $390,000 in losses when the homes went into foreclosure, federal court document show.
Between May and December 2005, Allstate agent Godwin Asifo enlisted at least three people as straw buyers, promising them he’d be able to sell the homes they purchased within six months, court documents filed in the Alexandria U.S. District Court said. Their credit, he told them, would be boosted and they’d have cash for down payments on future homes.
Asifo, documents said, would then insure the properties so he could collect an 8 percent commission. Later, Asifo allowed the properties to go into foreclosure, despite promises that he would pay the mortgages. The scheme caused losses to the mortgage companies and damaged the buyers’ credit.
Asifo was indicted Thursday. On Friday, a spokeswoman for Allstate said Asifo still was an agent for the company.
The buyers couldn’t afford the homes, which ranged in value from $335,000 to $765,000, so Asifo would place up to $35,000 in their bank accounts and have them lie about their employment status so they could qualify, documents said.
One buyer following Asifo’s advice told a loan officer he earned $68,000 annually from a company Asifo owned, documents said. The $335,000 loan led to the purchase of 3091 Tecumseh Court in Woodbridge. It went into foreclosure May 1, costing the mortgage company $120,000.
When Asifo helped another buyer obtain loans to buy a $765,000 home at 5712 Caribbean Drive in Haymarket, Asifo admitted receiving a cash bonus from the loan officer, documents said. The loan officer, Asifo contended, placed between $2,000 and $5,000 in the victim’s bank account to help the victim qualify for the mortgage.
The Haymarket home later went into foreclosure, costing the mortgage company $200,000, documents showed.
In December 2005, just as the Haymarket deal went through, Asifo lined up his next buyer, who bought a $385,000 home at 42451 Rockrose Square in Ashburn, documents showed. Asifo owned the house and gained $50,000 from the sale. It went into foreclosure in June 2007, costing the mortgage company $70,000.
Asifo’s attorney, John Iweanoge, did not return calls Friday for comment.
