The first of five people to be sentenced in a Los Angeles-area property-flipping and mortgage fraud scheme that resulted in $6 million in fraudulent loans has received a 10-year prison sentence.

James Davis Bennett, 53, who owned several real estate companies in Anaheim Hills, was accused of buying multiple-unit rental properties in distressed areas of Los Angeles and Long Beach. He purchased the properties in cash in the name of his mother, wife and stepson, selling them to straw buyers at inflated prices.

Bennett was convicted of preparing fraudulent loan applications for straw borrowers who otherwise would not have qualified for the loans, which were typically for about $100,000 more than Bennett paid for the properties. Lenders were led to believe borrowers had made significant down payments on the properties, which they had not.

In January, a jury found Bennett, who acted as the escrow officer on the transactions, guilty of four counts of wire fraud and six counts of bank fraud. Chief U.S. District Judge Alice Marie H. Stotler sentenced Bennett to 121 months in federal prison on Oct. 6.

A licensed mortgage broker and appraiser who lived in Yorba Linda, Bennett operated West Belle Mortgage, West Belle Mortgage Escrow, West Belle Realty and Independent Appraisers.

Stotler is scheduled to sentence four others who pleaded guilty to wire fraud and bank fraud charges in the case: Bernardo Fernandez, Benny Ibarra, Steven Rogers and Ricardo Garcia.

This case is a result of an investigation by the Federal Bureau of Investigation, according to a statement by the U.S. Attorney’s office for the Central District of California.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×