Defendant No. 6 joins mortgage fraud case
Federal prosecutors have charged a sixth defendant in a mortgage fraud case that displaced two families on Oahu.
Paula Galacgac is the unindicted co-conspirator named as P.G. in an indictment returned by a federal grand jury in May charging five others with crimes related to mortgage fraud. Prosecutors charged her Friday and she has agreed to plead guilty this week.
Two other defendants, Albert Alimoot and Evan Koizumi, are scheduled to plead guilty tomorrow before a federal magistrate judge.
They had been scheduled to plead guilty last Thursday but U.S. District Judge J. Michael Seabright reassigned the case because he could not be sure whether investigators contacted him about the case when he was an assistant U.S. attorney.
Galacgac was a loan officer with a mortgage broker company. She identified properties occupied by individuals facing foreclosure and otherwise having financial difficulty, according to court documents. She, along with John Mendoza, Antonio Alcantara Jr., Ira Altwegg, Alimoot and Koizumi, are accused of convincing troubled property owners that they could sell their properties to so-called "straw purchasers" without having to move out.
The straw purchasers didn't intend to occupy the homes but filled out false loan applications to obtain loans they never intended to repay, according to the indictment.