Crime & Safety

Laguna Beach Woman Among Arrestees in House Flipping Scheme

The suspects tried to turn some properties that didn't even exist, the indictment alleges.

Three Orange County residents were among six people indicted in a real-estate "flipping" scheme in which at least 37 investors lost a minimum of $4.2 million, authorities said today.

Sylvia Melkonian, 48, of Laguna Beach, was arrested Monday, entered a not guilty plea and was released on $20,000 bond, Thom Mrozek of the U.S. Attorney's Office said.

Andrew Wardein, 38, of Irvine, surrendered to authorities Friday and was released on a $25,000 bond, Mrozek said. Wardein has a trial date of June 12.

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Craig Shults, 41, of Huntington Beach, was scheduled to be arraigned Wednesday afternoon in Santa Ana, Mrozek said.

Also indicted were Sheridan Snyder, 65, of Turtletown, Tenn., who was arrested Monday by the FBI and appeared in U.S. District Court in Tennessee, where he was released on a $30,000 bond, Mrozek said. He was ordered to appear in court in Santa Ana April 30.

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Paul LiCausi, 47, and Joseph Haymore, 31, both of Fort Pierce, Fla., were scheduled to be in Santa Ana federal court April 30.

Investors were allegedly told about properties that could be bought and resold within a year for a profit, but the properties were nearly impossible to sell, according to Mrozek.

A federal grand jury returned wire fraud indictments April 18. Starting in 2009 and continuing through the middle of 2010, investors were told that those who paid less than $10,000 for a property would be given clean titles, property management services and would be able to rent the property within three months, the indictment alleges.

The defendants were promised an "exit strategy" that would enable them to sell the properties back for $60,000, the indictment alleges. But, in some instances, the properties did not exist. Others were condemned or had issues with the titles that made them difficult or impossible for the buyers to sell, according to the indictment.

Mrozek said more than 50 people may have been victimized, and losses totaled more than $4.2 million. Assistant U.S. Attorney Patricia Fusco said the recession and the glut foreclosed properties made it easier for crooks to pull off real estate-based fraud.

-- City News Service


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