Vegas Couple Faces Fraud Charges

A Las Vegas couple is accused of orchestrating more than 400 sham real estate deals and cashing in on millions of dollars through a mortgage fraud scheme that involved inflated house values and straw buyers. Eve Mazzarella, ABR®, GRI, broker and owner of Distinctive Real Estate & Investments in Las Vegas, and her husband, Steven Grimm, were indicted last Wednesday and charged with bank fraud, money laundering, and aiding and abetting, according to the U.S. Attorney for the District of Nevada. If convicted, they could face up to 30 years in prison and a $1 million fine on each of the six bank fraud charges. They could also face up to 10 years in prison and a $250,000 fine on the money laundering charge, according to the U.S. Attorney.The couple operated numerous limited-liability companies and allegedly used them to engage in 432 straw buyer transactions and obtain control over about 227 properties at inflated values. The total purchase price of the properties was more than $100 million. The couple defaulted on mortgage payments on many of the loans, which caused at least half of the properties to go into foreclosure, according to officials. The foreclosed properties have caused losses to the banks of more than $15 million. Mazzarella was recognized last year as one of REALTOR® magazine’s “30 under 30,” a program that recognizes 30 rising young stars in the real estate industry. Each finalist is screened for legal and ethical violations prior to being selected as a “30 under 30.” Mazzarella did not have any violations when the magazine selected her as part of the 2007 “30 under 30."Attempts by REALTOR® magazine to reach Mazzarella were unsuccessful.