Four arrested in mortgage fraud scheme

Four people have been arrested in connection with a mortgage fraud scheme that prosecutors allege preyed upon members of Utah's Polynesian community in dire financial straits.

The Utah Attorney General's Office served a search warrant on a title company in the Fort Union area on Thursday, a day after arresting Elenoa Hosea Moala, 46; Laura Elena Solorio, 40; Haloti Moala Liavaa, 42; and Kathryn Ellen Thompson, 45; on charges ranging from communications fraud, identity fraud and pattern of unlawful activity, all second-degree felonies.

A video of the warrant's execution released by the attorney general showed investigators carrying out several boxes of evidence.

According to a probable cause statement filed in 3rd District Court Tuesday, Moala approached several people who had fallen on financial hard times. The attorney general's Financial Crime Investigations unit says the victims in several cases signed a quit claim deed, giving title to their property.

"(The woman) does not speak English and did not understand what she was signing," special agent Steven Sperry wrote in charging documents.

The property was transferred over to a company that allegedly had a straw buyer. The Utah Attorney General's Office said the buyer would be another Polynesian, who would be asked to purchase the property with the promise that all the mortgage bills would be paid.

"Moala told (the buyer) that she would pay (the buyer) $5,000 for the use of her credit, and that Moala would take care of the monthly payments," he wrote.

The alleged straw buyer, however, appeared to be unaware that no one was making the monthly payments on the properties, prosecutors said. The homeowners were evicted, and the buyer was left with bad credit, investigators said.

The criminal charges only list three properties, but the Utah Attorney General's Office said it is investigating the possibility of other victims. The four defendants made an initial appearance in court, and bail was set at $100,000.

E-MAIL: bwinslow@desnews.com