The second of two brothers under investigation for alleged mortgage fraud was arrested Tuesday by the Wheat Ridge Police Department, accused of falsifying financial information of a potential property buyer.
Issiah Kaleo Magalei was arrested for investigation of two counts of felony theft and two counts of forgery.
Wheat Ridge investigators allege that Magalei, working through a company called Dreams Come True Lending, 4040 Teller St. in Wheat Ridge, falsified the financial information of the potential buyer by inflating her wages.
He did this, investigators allege, to qualify her for a loan to purchase and then refinance a rental property in Denver.
Magalei is also accused of receiving $40,000 from the seller and $10,000 from the victim — in this case the buyer — to make repairs to the property so it would be suitable for renting. Those repairs allegedly were never made.
The victim ultimately lost the property to foreclosure.
The Jefferson County district attorney’s office has already formally charged Magalei’s brother, Zachariah Magalei, 36, working through a company called Superior Lending Associates, 6990 W. 38th Ave. in Wheat Ridge.
Zachariah Magalei has been charged with one count of theft and five counts of forgery.
Both brothers are free on bond.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
