Former FBI Employee, His Wife Plead Guilty To Bank Fraud Charges In San Francisco
SAN FRANCISCO (CBS SF) — A former FBI employee and his wife pleaded guilty Thursday in federal court in San Francisco to bank fraud in connection to mortgages they obtained for rental homes in Daly City and San Bruno, according to federal prosecutors.
Charles and Jeannette Espinel have admitted to defrauding First California Bank and Wells Fargo Bank by submitting fraudulent mortgage applications in 2006 and 2007 for a $750,000 rental home in Daly City and a $600,000 rental home in San Bruno, according to the U.S. Attorney’s Office.
The couple overstated their income in the applications and claimed that they planned to live in the properties as their primary residence. They also obtained loan modifications by submitting altered tax returns, prosecutors said.
In addition, Charles Espinel, 61, who worked from 1979 to 2012 as a support services technician in the San Francisco division of the FBI, submitted falsified annual financial disclosure forms from 2007 to 2010.
Espinel, who held top secret security clearance and had access to sensitive information, failed to disclose his wife’s income, the real estate properties he owned and the income he derived from them, prosecutors said.
The Espinels were charged on June 4 with one count of bank fraud. They are scheduled to be sentenced on Nov. 12, 2014, and face a potential sentence of up to 30 years prison and up to $1 million in fines.
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