Northern California developer admits $22 million fraud
SACRAMENTO, Calif. (AP) — A Sacramento-area restaurant owner and commercial real estate developer is admitting to frauds that cost banks more than $22 million.
Fifty-nine-year-old Abolghasseni Alizadeh of Granite Bay pleaded guilty Friday to wire fraud, bank fraud and making false statements to a federally insured financial institution.
Federal prosecutors say he fraudulently purchased land that he planned to develop by submitting altered purchase contracts to banks that greatly inflated the purported purchase price.
As a result, he would get substantial amounts of cash — sometimes millions of dollars — as the deals closed, while he avoided making full down payments or sometimes any down payment.
A co-defendant, 64-year-old Mary Sue Weaver of Scottsdale, Arizona, previously pleaded guilty to fraud. She formerly worked at a title company in Lincoln.
Both face sentencing in March.