A Federal Way man pleaded guilty Monday to charges that he was involved in a $47 million mortgage fraud scheme.

 

Viktor Kobzar, 32, could face up to eight years in prison and fines of up to $350,000 when he is sentenced in January. He is one of seven defendants charged in the scheme.

 

Kobzar pleaded guilty to charges of conspiracy to commit bank fraud, mail fraud, wire fraud and filing a false tax return, according to the U.S. Attorney’s Office for the Western District of Washington. Prosecutors said Kobzar was a mortgage broker and worked with three Bellevue companies in the fraud.

 

Investigators in the case reviewed dozens of loan files submitted by a Nationwide Home Lending LLC and Kobay Financial Corporation to lending institutions. In 69 of the files, submitters used fraudulent information to receive $47 million in loans, which were closed at Emerald City Escrow. Defendants used unqualified buyers to get purchase money and refinance loans, prosecutors said. Kobay and Nationwide employees submitted falsified loan applications to hide that the buyers were unqualified.

 

In one example, the defendants purchased one home in Medina for $775,000 using false information for a loan. Six months later, another recruited buyer bought the home for $1.2 million in false loans. Bank records show hundreds of thousands went to Kobzar and co-defendant Vladislav Baydovskiy of Bellevue. The money reportedly went to Baydovskiy’s homeowner’s management fees and yacht moorage.

 

Defendants have agreed to forfeit $2.5 million and luxury vehicles, including a 2004 Lamborghini Gallardo, a 2006 BMW X5 and a 31-foot Bayliner.

 

The case is investigated by the FBI, U.S. Postal Inspection Service and the IRS.