12/06/2006
The president and chief executive of a Modesto real estate brokerage company has pleaded guilty in federal court to 122 counts of fraud and money laundering in connection with a scheme to defraud homeowners and lenders of millions of dollars in cash.
Tony Daniloo, a 32-year-old Turlock man, entered his plea Tuesday and is scheduled to be sentenced on March 20.
According to the indictment against him handed up by a federal grand jury on Aug. 31, Daniloo secretly embezzled large amounts of money from real estate clients in the East Bay and the Central Valley.
The indictment alleges that Daniloo defrauded homeowners of approximately $7 million in cash that the victims intended to use for their own cash needs.
Prosecutors say that from 2000 to 2002, Daniloo managed the Dublin branch office of Residential Credit Corp., a mortgage brokerage company based in Westminster, Calif.
They say that in 2003, Daniloo co-founded DreamLife Financial, which maintained headquarters in Modesto and as many as seven branch offices, and served as its president and chief executive until it closed in December 2004.
The indictment alleges that Daniloo's clients at both Residential Credit Corporation and DreamLife sought to refinance their properties in order to convert the equity in their properties for their cash needs.
Instead, according to the charges, Daniloo altered escrow documents to cause large amounts of cash intended for his clients to be deposited into his personal bank accounts.
The indictment alleges that Daniloo laundered his criminal proceeds by making numerous "lulling payments'' to victim homeowners, as well as spending massive amounts of stolen money to garner publicity for DreamLife.
For example, prosecutors say Daniloo made a $1 million pledge to the athletic department at California State University, Stanislaus in exchange for the university renaming its athletic arena "DreamLife Arena.''
And in 2004, DreamLife was a finalist for naming rights of the San Francisco 49ers' football stadium at Candlestick Point.
In addition to the federal charges, Daniloo faces local charges in Alameda County.
In a statement, U.S. Attorney Kevin Ryan said Daniloo's guilty plea "demonstrates that federal law enforcement will work to hold accountable those who would enrich themselves through real estate fraud at the expense of innocent homeowners.''
Ryan said, "Fraud in real estate financing can deprive homeowners of their life savings.''
http://cbs5.com/localwire/localfsnews/bcn/2006/12/06/n/HeadlineNews/FRAUD-PLEA/resources_bcn_html
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