A former Dixon real estate salesman has been sentenced to federal prison for his role in a mortgage fraud scheme.
Hubert Rotteveel, 52, was sentenced Tuesday by Senior U.S. District Judge William B. Shubb to three years and four months in prison for one count of mail fraud, according to a U.S. attorney’s office news release.
In September 2014, a federal jury found Rotteveel guilty of one count of mail fraud related to 13 properties in Dixon. According to evidence produced during the trial, Rotteveel acted as a real estate salesman for the properties, with more than $7 million in loans authorized for just two buyers in seven months. He inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the buyers to induce the lenders to fund the loans for the properties.
Rotteveel surreptitiously made down payments on the homes, rather than the buyers doing so, and got the money, and usually more, back from the lenders at closing, authorities said. For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company Rotteveel owned, without disclosing these payments to the lenders.
All 13 properties were used as rentals, with Rotteveel collecting the rents through Windmill Properties. Authorities said he netted more than $300,000 through the sales in just seven months, and the lenders lost more than $3 million when all 13 properties underwent foreclosure.
The Sacramento Bee reported in October 2010 that Rotteveel pleaded no contest in Yolo Superior Court to three counts of second-degree robbery and one count of attempted second-degree robbery, and was sentenced to four years and eight months in prison.
Those charges stemmed from robberies June 30, 2010, at River City Bank in Woodland and First Northern Bank of Dixon in West Sacramento. In both holdups, Rotteveel used a BB gun to get money from tellers.
Rotteveel had built a successful real estate business, but saw his fortune collapse during the recession and sought bankruptcy protection in 2009.