An Issaquah real estate agent, David Sobol, 40, has been sentenced to two years in prison as one of the defendants in a case of mortgage fraud and the falsification of loan documents.

Mortgage broker, Vladislav Baydovskiy, 31, of Bellevue, was sentenced Tuesday in U.S. District Court in Seattle to five years in prison and three years of supervised release for conspiring to commit bank fraud, mail fraud, and wire fraud, and filing a false tax return. Baydovskiy operated two brokerage companies, Nationwide Home Lending LLC and Kobay Financial Corporation.

He and Sobol were among six people arrested March 26 on a grand jury indictment for a mortgage fraud scheme that allegedly defrauded more than a dozen banks and mortgage lenders of more than $47 million.

Sobol’s wife, Alla Sobol, 28, of Renton, a mortgage broker, was sentenced to two years in prison.

Baydovskiy is forfeiting to the government a 2004 Lamborghini, Gallardo, a 2006 BMW 750, a 2007 BMW X5, a 31 foot Bayliner yacht, and several bank and investment accounts totaling approximately $2.4 million. A hearing will be held in January 2010 to determine the amount of restitution owed by the defendants.

According to a media release from the United States Attorney’s office, Baydovskiy was a mortgage broker who operated two brokerage companies, Nationwide Home Lending LLC and Kobay Financial Corporation; and established a third company, Emerald City Escrow, to close transactions involving the fraudulently obtained loans.

At sentencing U.S. District Judge Marsha Pechman said, “you went from one scheme to the next. When you saw regulators closing in you opened the next.”

According to records filed in the case, the defendants secured through “straw buyers” and otherwise unqualified purchasers at least 68 loans, representing $46 million in loan proceeds, based on false and fraudulent representations.

All of the fraudulently obtained loans were closed at Emerald City Escrow. Employees and principals at Kobay and Nationwide prepared and submitted falsified loan applications and related verification documents to lenders in a scheme to conceal the fact that buyers were otherwise unqualified to obtain purchase loans.

Relying on the fraudulent information, lenders extended loans that exceeded the value of the property and the borrower’s ability to re-pay the loan. Employees and principals of Emerald City diverted some of the fraudulently obtained loan proceeds to themselves and others associated with the scheme. False settlement documents were prepared to conceal the diversion from lenders.

Camie Byron, 28, of Renton, a loan officer, was sentenced to two years in prison.

The court will conduct a restitution hearing on January 29, 2010 to determine how much money the defendants will be required to pay the victims.

The case was investigated by the FBI, U.S. Postal Inspection Service, and the Internal Revenue Service Criminal Investigation (IRS-CI), and was prosecuted by Assistant United States Attorneys Jim Oesterle and Carl Blackstone.