Federal Way broker gets 5 years for mortgage fraud
A Federal Way mortgage broker has been sentenced to five years in prison for defrauding lenders of more than $47 million.

By Mike Carter

Seattle Times staff reporter

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Archive | 7 indicted in state’s biggest mortgage-fraud scheme
A Federal Way mortgage broker has been sentenced to five years in prison for defrauding lenders of more than $47 million.

Victor Kobzar, 32, operated two area brokerage companies, Nationwide Home Lending and Kobay Financial Corp., and formed a third company, Emerald City Escrow, through which he obtained fraudulent loans in the name of “straw buyers” who otherwise would not be qualified to obtain the loans, according to federal prosecutors. They say more than a dozen banks and other lenders were victimized.

“People who take advantage of lax review by financial regulators bear a huge responsibility for the financial meltdown that harmed many people,” U.S. District Judge Marsha Pechman told Kobzar at a hearing on Friday.

Kobzar was one of six people indicted last March on conspiracy charges involving mail fraud, bank fraud and wire fraud. The indictment and other court documents alleged the group obtained 68 loans through fraud — all closed by Emerald City Escrow — which involved lying about a borrower’s qualification. Many of the loans were for amounts exceeding the worth of the property that was being bought.

Last month a co-defendant, Vladislav Baydovskiy, also received a five-year sentence. Three of the four other defendants received two-year terms, and the fourth was given probation.

In addition to the prison terms, the government seized a 2004 Lamborghini, two BMWs, a 31-foot yacht and bank accounts containing $2.4 million.

A hearing is scheduled for later this month to determine the amount of restitution the defendants will have to pay, said Emily Langlie, a spokeswoman for the U.S. Attorney’s Office in Seattle.

Mike Carter: 206-464-3706 or mcarter@seattletimes.com

Seattle Real Estate Tyler Freed