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Loan Officer Pervaiz Arshad for E-Star Lending was sentenced to 4 years in prison for mortgage and passport fraud

2:00 PM, Nov 16, 2012   |    comments
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ANNANDALE, Va. (WUSA) --  A man was sentenced to four years in prison for mortgage and passport fraud after fleeing to Pakistan to avoid prosecution.  

Pervaiz Arshad, 58, of Annandale, Va., was sentenced to four years in prison, and will be under supervision for three more years when he is released.  

Arshad was sentenced for his role in fraudulent mortgage loan transactions involving nine homes in northern Virginia and nearly $1.7 million in losses to lenders, as well as for his role in attempting to obtain a fraudulent passport for a co-conspirator fleeing to Canada. He was also ordered to pay restitution to the victim lenders and to forfeit the proceeds of his crimes.

Court documents say Arshad was a loan officer for Annandale-based E-Star Lending and recruited an individual to serve as a straw buyer in fraudulent real estate transactions designed to enrich himself and others. The properties, owned by co-conspirators, were sold to the straw buyer at a profit.  Arshad guaranteed the straw buyer would qualify for the 100 percent financing used to buy the properties by reporting false employment and income information on the loan applications.

Court documents say individuals working with Arshad set up fake companies to verify the false employment information.  No payments were made on the loans and Arshad intended for the straw buyer to flee to Canada before the fraud was discovered.  

Arshad was indicted in this case in 2010, after he fled to Pakistan to avoid prosecution. Police arrested him in July 2012 when authorities spotted him on a flight into Dulles International Airport. 

Arshad is the sixth individual associated with E-Star Lending to be convicted of mortgage fraud related charges since 2008.  

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