Mikey committed fraud to purchase beachfront house?

ABS-CBN News

Posted at Apr 12 2011 07:47 PM | Updated as of Apr 13 2011 03:47 AM

MANILA, Philippines - While Ang Galing Party-list Rep. Juan Miguel “Mikey” Arroyo insists there is nothing wrong in the sale of his alleged beachfront house in California, he should be posed a question as to how it landed on his lap in the first place, a finance expert said.

In an interview with ABS-CBN Northern America News Bureau, financial advisor James Triguero is wondering how Arroyo got his mortgage approved when he purchased the Foster City property in 2006. Triguero is also a member of the Filipino American Chamber of Commerce.

“He makes P455,000 a year. That would not even cover the property taxes on that property. How did they get a loan for $1 million? They would have to commit mortgaged fraud and claim that they had a $300,000 plus income in the United States, when of course he’s functioning as a congressman in the Philippines to qualify,” he explained.

He stressed: “If you lie on a mortgage application like that, that’s fraud.”

VERA Files reported on Monday that a company partly-owned by the former First Son sold the house for $1.125 million to owners of the restaurant chain “Gerry’s Grill.”

VERA Files said Arroyo claimed 40% ownership of the real estate firm, Beachway LLC, but “visitors to the Foster City property were left without a doubt as to its occupants’ identities.” VERA Files obtained photos of Mikey and his family displayed on some furnitures in the house.

In a separate interview, Arroyo said there is nothing wrong with the sale of the 5-bedroom house overlooking San Francisco Bay. He said it has been acquired by Beachway LLC, where he only has a minority stake.

Mortgage

ABS-CBN found out that the former First Son actually got 2 mortgages that reached more than $1 million for the property, which was originally under the name of his wife Ma. Angela.

Within 2 years, these were all paid off. It was after a year that it was sold to Beachway.

Triguero, however, asked how they were able to bring in huge sums of money in the US without alarm bells going off.

“Well, the Financial Crimes Enforcement Network first highlighted this risk that mortgage companies could be used as a way to launder money,” he said.

He also noted: “This issue of we’re in the business of buying and selling real estate, if you search the San Mateo County Assessor’s documents that was the only property that Beachway LLC owned.” - from a report by Nadia Trinidad, ABS-CBN

 

Screengrabs from Web site of Office of Mark church, San Mateo County Chief Elections Officer & Assessor-County Clerk-Recorder (www.smcare.org)

Mikey committed fraud to purchase beachfront house? 1