IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLORADO

Criminal Case No.

UNITED STATES OF AMERICA,

Plaintiff,

v.

1. WAUNITA WEINGART

2. JOHN PHILLIP GALLEGOS

3. ALOIS CRAIG WEINGART

Defendants.

_____________________________________________________________________

INDICTMENT

18 U.S. C. § 1343

18 U.S.C. § 1957

The Grand Jury charges as follows:

Counts 1-12

(Wire Fraud)

1. Beginning in or about July 1999, and continuing thereafter until about May 31,

2008 in the District of Colorado, the defendants, Waunita Weingart, John Phillip Gallegos,

and Alois Craig Weingart, did knowingly devise and intend to devise a scheme to defraud

lenders that funded residential mortgage loans and for obtaining money from them by

means of materially false and fraudulent pretenses, representations, and promises,

hereinafter referred to as “the scheme”.

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 11-cr-00355-MSK

Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 1 of 12
2. It was part of the scheme that:

(a) Each of the defendants repeatedly obtained mortgage loans for the

properties located at 7766 Saxeborough Drive, Castle Rock, Colorado (“Saxeborough”)

and/or 141 Lost Angel Road, Boulder, Colorado (“Lost Angel”), pledging the same

properties again and again as collateral to each successive lender without paying off the

prior loans. For each new loan, the defendants made it appear as though the lender would

obtain a first priority security interest in the subject property, knowing that the lender would

not.

(b) The defendants used several companies, each controlled by at least

one of them, to facilitate their scheme. The companies were Escrow Closing Services, LLC,

Paradigm Escrow and Title, LLC, Colorado County and Community Title, LLC, Real Estate

Title, LLC, Transaction Coordinator Services, LLC, and G-4 Holding Company, LLC. 

(c) As borrowers, the defendants typically described each new loan as the

refinancing of an existing loan secured by either the Saxeborough or the Lost Angel

property. They usually falsely represented to the lenders that they had no more than one

existing loan on which that property had been pledged as collateral and that a large portion

of the proceeds from the new loan would be used to pay off the existing loan.

(d) The defendants provided false information and false certifications to

the lenders as necessary to ensure that they would qualify for the desired loans. Each

defendant regularly overstated his or her true legitimate income, representing that he or

she had high monthly earnings from employment at companies whose names were slight

variations of “Transaction Coordinator Services, LLC”, one of the entities they controlled.

John Gallegos and Waunita Weingart were licensed title insurance producers. On some

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Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 2 of 12
occasions, the defendants submitted altered versions of Waunita Weingart’s license in

support of loan applications for Craig Weingart, making it appear that he was a licensed

insurance producer, when he was not.

(e) In some cases, the defendants used G-4 Holding Co., LLC as

mortgage broker, with Waunita Weingart or John Gallegos acting as loan officer for the

borrower. This eliminated the need to deal with an independent third party who would

gather loan application documents for the lender. Through G-4 Holding Co., the defendants

were also able to obtain credit reports from a credit reporting agency. 

(f) The defendants were aware that there were outstanding debts against

which the subject property for each loan had been pledged as collateral to other lenders.

The defendants also knew that during the loan application process, the lenders would

obtain their credit reports, and that those reports would reveal the amounts of their

outstanding debts. On their loan applications, the defendants therefore falsely represented

that the debts identified on their credit reports were related to other properties, and not to

Saxeborough or Lost Angel. In this elaborate deception, the defendants made it appear as

though they owned numerous other properties, whose value supported their substantial

debt.

(g) On occasion, Waunita Weingart and John Gallegos provided false

social security numbers to the lenders on their loan applications, a tactic which would have

made it more difficult for the lenders to obtain their true credit histories. They also used

false social security numbers to open certain personal and business bank accounts.

(h) The defendants usually arranged to have one of their own companies

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Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 3 of 12
serve as title insurance agent and/or settlement agent for the transactions. These

companies, Escrow Closing Services, LLC, Paradigm Escrow and Title (“Paradigm”),

Colorado County and Community Title (“CCCT”), and Real Estate Title, LLC, purported to

serve as independent and disinterested third parties to the transactions. In fact, they were

controlled by one or a combination of the defendants. To conceal their own involvement

from the lenders, the defendants used documents from these companies bearing the

names and forged signatures of other individuals.

(i) Paradigm, CCCT, and Real Estate Title provided title commitments to

the lenders before the closings. These commitments provided false assurances to the

lenders that they would acquire first priority lien positions when the purported sole existing

loan against the property was paid off at closing.

(j) To make it appear as though there was only one existing loan and that

it would be paid off at closing, the defendants caused a payoff notice quoting an exact

payoff figure to be provided to the lender in advance of the closing.

(k) For each closing, the lender had the loan proceeds sent to the

settlement agent’s bank account to be distributed as the lender directed. The defendants

did not reveal to the lenders that these accounts were controlled by one or a combination

of them. Instead of paying off the purported sole existing loan as directed, Waunita

Weingart and John Gallegos misappropriated the proceeds and used them for the benefit

of the defendants and to perpetuate their fraudulent scheme.

(l) For each new loan, the defendant-borrower executed a deed of trust

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Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 4 of 12
to the lender, pledging the subject property as collateral. The settlement agent was to have

promptly recorded these deeds with the county clerk and recorder, as required to protect

each lender’s priority lien position. In fact, the defendants failed to have the deeds promptly

recorded and in many cases, never had them recorded at all.

(m) CCCT and Real Estate Title were at times during the scheme agents

for a title insurance company. In that capacity, they sometimes provided title insurance

policies to the lenders after the closings. These policies were issued under the false

pretense that the purported sole existing loan had been paid off, and that the property was

otherwise unencumbered. Even after a title insurance company terminated its agency

relationship with Real Estate Title and CCCT, the defendants caused phony title insurance

documents in the name of that title insurance company to be provided to the lenders. 

(n) On or about each of the dates listed below, one or a combination of

the defendant(s) acquired a loan under the name of the borrower(s) listed below from the

named lender in the listed amount and pledged the named property as collateral thereon:

Date Borrower(s) Lender Amount Property

7/29/99 Craig A. Weingart

Waun R.

Weingart

Broadstreet

Mortgage

$363,300 7766 Saxeborough

Drive

8/3/00 Craig A. Weingart

Waun R.

Weingart

Jefferson Mortgage

Group

$420,000 7766 Saxeborough

Drive

8/7/00 Craig A. Weingart

Waun R.

Weingart

Flagstar Bank $397,500 7766 Saxeborough

Drive

10/12/00 Craig A. Weingart

Waun R.

Weingart

Option One

Mortgage

$356,000 7766 Saxeborough

Drive

5

Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 5 of 12
3/21/02 John P. Gallegos Aames Funding

Corp. d/b/a Aames

Home Loan

$278,000 141 Lost Angel

Road

3/29/02 John P. Gallegos Resource Bank $400,000 141 Lost Angel

Road

6/25/02 John P. Gallegos General Mortgage

Corp. of America

$229,800 141 Lost Angel

Road

8/1/02 Craig A. Weingart

Waun R.

Weingart

Beneficial

Mortgage Co. of

Colorado

$33,964 7766 Saxeborough

Drive

 1/27/03 Craig A. Weingart General Mortgage

Corp. of America

$400,000 7766 Saxeborough

Drive

11/19/03 Alois C. Weingart 1st Mariner Bank $420,000 7766 Saxeborough

Drive

2/13/04 John Gallegos 1st Mariner Bank $400,000 141 Lost Angel

Road

2/19/04 Alois C. Weingart Liberty American

Mortgage

$405,000 7766 Saxeborough

Drive

4/9/04 Waun Weingart Chase Manhattan

Mortgage

$320,000 7766 Saxeborough

Drive

4/9/04 Waun Weingart Chase Manhattan

Mortgage

$410,000 141 Lost Angel

Road

5/6/04 Waun Weingart Washington Mutual

Bank

$400,000 7766 Saxeborough

Drive

5/24/04 Waun Weingart American

Wholesale Lender

$445,500 141 Lost Angel

Road

10/25/04 Waun Weingart Washington Mutual

Bank

$397,500 141 Lost Angel

Road

11/15/04 Waun Weingart Lehman Brothers

Bank

$400,000 141 Lost Angel

Road

11/15/04 Waunita R.

Weingart

Ohio Savings Bank $360,400 7766 Saxeborough

Drive

6

Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 6 of 12
11/15/04 Waun Weingart Lehman Brothers

Bank

$360,000 7766 Saxeborough

Drive

8/19/05 Waun Weingart Ameriquest

Mortgage

$496,000 7766 Saxeborough

Drive

8/25/05 John P. Gallegos Wells Fargo Bank $400,000 141 Lost Angel

Road

8/26/05 Craig A. Weingart World Savings

Bank

$406,250 7766 Saxeborough

Drive

8/31/05 Craig A. Weingart Ocwen Loan

Servicing

$492,000 7766 Saxeborough

Drive

9/7/05 Craig A.

Weingart

Chevy Chase Bank $400,000 7766 Saxeborough

Drive

9/21/05 Craig A.

Weingart

Waun Weingart

National City

Mortgage

$425,000 7766 Saxeborough

Drive

10/7/05 Craig A. Weingart Irwin Mortgage

Corp.

$386,500 7766 Saxeborough

Drive

10/13/05 Craig A. Weingart WMC Mortgage $400,000 7766 Saxeborough

Drive

10/18/05 Craig A. Weingart Wells Fargo Bank $412,500 7766 Saxeborough

Drive

12/5/06 Craig A. Weingart New Century

Mortgage

$568,000 7766 Saxeborough

Drive

12/5/06 Craig A. Weingart New Century

Mortgage

$142,000 7766 Saxeborough

Drive

12/22/06 Waun Weingart EquiFirst Corp. $440,000 7766 Saxeborough

Drive

12/27/06 John P. Gallegos Wells Fargo Bank $495,000 141 Lost Angel

Road

12/29/06 Waun Weingart EquiFirst Corp. $465,000 141 Lost Angel

Road

1/23/07 Waun R.

Weingart

New Century

Mortgage

$450,000 141 Lost Angel

Road

10/30/07 Craig A. Weingart World Savings $86,300 7766 Saxeborough

7

Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 7 of 12
Bank Drive

1/18/08 Alois C. Weingart Bank of America $417,000 7766 Saxeborough

Drive

1/18/08 Alois C. Weingart Bank of America $32,000 7766 Saxeborough

Drive

3/14/08 Waun Weingart Bank of America $417,000 141 Lost Angel

Road

3/14/08 Waun Weingart Bank of America $28,362 141 Lost Angel

Road

4/21/08 John P.Gallegos Bank of America $417,000 141 Lost Angel

Road

(o) To perpetuate the fraud and avoid detection, the defendants caused

regular payments to be made on the loans, often using the proceeds of other loans in the

scheme. In a few instances, they used the proceeds of later loans to pay off outstanding

loans in the scheme.

3. Paragraphs 1 and 2 are incorporated into each count in Counts 1 - 12, as

though fully set forth in their entirety.

4. On or about the date listed below for each count, in the District of Colorado,

the defendant(s) named for that count did, for the purpose of executing the scheme set

forth in Paragraphs 1 and 2 of this indictment, knowingly cause writings, signs, and signals

to be transmitted in interstate commerce from the state named for that count to the state

of Colorado by means of a wire communication as described in that count, all in violation

of Title 18, United States Code, Section 1343:

Count Defendant(s) Date From Communication

1 Waunita

Weingart, John

12/11/06 New York Wire transfer notification of a

$569,998.75 deposit in

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Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 8 of 12
Phillip Gallegos,

and Alois Craig

Weingart

connection with a loan by

New Century Mortgage to

Craig Weingart for 7766

Saxeborough Drive, Castle

Rock, CO.

2 Alois Craig

Weingart and

John Phillip

Gallegos

12/11/06 New York Wire transfer notification of a

$140,773.65 deposit in

connection with a loan by

New Century Mortgage to

Craig Weingart for 7766

Saxeborough Drive, Castle

Rock, CO.

3 Waunita

Weingart

12/22/06 North

Carolina

Wire transfer notification of a

$442,830.71 deposit in

connection with a loan by

Equifirst Corp. to Waun

Weingart for 7766

Saxeborough Drive, Castle

Rock, CO.

4 Waunita

Weingart

12/29/06 North

Carolina

Wire transfer notification of a

$466,225.30 deposit in

connection with a loan by

EquiFirst Corp. to Waun

Weingart for 141 Lost Angel

Road, Boulder, CO.

5 Waunita

Weingart and

John Phillip

Gallegos

1/3/07 California Wire transfer notification of a

$502,083.80 deposit in

connection with a loan by

Wells Fargo Bank to John

Gallegos for 141 Lost Angel

Road, Boulder, CO.

6 Waunita

Weingart and

John Phillip

Gallegos

1/24/07 New York Wire transfer notification of a

$452,735.44 deposit in

connection with a loan by

New Century Mortgage to

Waun Weingart for 141 Lost

Angel Road, Boulder, CO.

7 Waunita

Weingart and

Alois Craig

11/5/07 New York Wire transfer notification of a

$20,000.00 deposit in

connection with a loan by

9

Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 9 of 12
Weingart World Savings Bank to Craig

A. Weingart for 7766

Saxeborough Drive, Castle

Rock, CO.

8 Waunita

Weingart and

Alois Craig

Weingart

1/23/08 New York Wire transfer notification of a

$411,457.51 deposit in

connection with a line of

credit loan by Bank of

America to Alois C. Weingart

for 7766 Saxeborough Drive,

Castle Rock, CO.

9 Waunita

Weingart and

Alois Craig

Weingart

1/23/08 New York Wire transfer notification of a

$32,017.68 deposit in

connection with a loan by

Bank of America to Alois C.

Weingart for 7766

Saxeborough Drive, Castle

Rock, CO.

10 Waunita

Weingart

3/18/08 New York Wire transfer notification of a

$414,084.56 deposit in

connection with a loan by

Bank of America to Waun

Weingart for 141 Lost Angel

Road, Boulder, CO.

11 Waunita

Weingart

3/18/08 New York Wire transfer notification of a

$28,149.19 deposit in

connection with a loan by

Bank of America to Waun

Weingart for 141 Lost Angel

Road, Boulder, CO.

12 John Phillip

Gallegos

4/18/08 New York Wire transfer notification of a

$408,307.46 deposit in

connection with a loan by

Bank of America to John

Gallegos for 141 Lost Angel

Road, Boulder, CO.

Counts 13-18

(Engaging in Monetary Transactions in Property Derived from 

Specified Unlawful Activity)

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Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 10 of 12
5. On or about the date listed below for each count, in the District of Colorado,

the defendant(s) named for that count did knowingly engage and attempt to engage in a

monetary transaction by, through, or to a financial institution, in or affecting interstate

commerce, and involving criminally derived property of a value greater than $10,000, as 

described for that count, such property having been derived from specified unlawful activity,

namely, wire fraud, as defined in Title 18, United States Code, Section 1343, all in violation

of United States Code, Section 1957:

Count Defendant(s) Date Transaction

13 Waunita Weingart

and John Phillip

Gallegos

1/17/07 Wire transfer of $15,000.00 from Real

Estate Title, LLC’s American National Bank

account number XXXX1142 to Bank of

America for Aero Toy Store

14 Waunita Weingart 1/29/07 Wire transfer of $50,000 from Real Estate

Title, LLC’s American National Bank

account number XXXX1142 to Wachovia

Bank for NUAW Designs 

15 Waunita Weingart

and John Phillip

Gallegos

5/9/07 Wire transfer of $53,955.96 from Waun

Weingart’s American National Bank

account number XXXX4723 to Key Bank

for Haggan Aviation

16 Waunita Weingart 9/4/07 Negotiation of check number 375 for

$15,000.00 drawn on Waunita Weingart

and Alois Craig Weingart’s Guaranty Bank

and Trust Company account number

XXXX1321, payable to Cash 

17 Alois Craig

Weingart

12/18/07 Issuance and transfer of check number

1002 in the amount of $51,100.00 drawn

on Craig A. Weingart’s World Savings

Bank Equity Line of Credit account to

Waun Weingart

18 Waunita Weingart 2/29/08 Wire transfer of $100,000.00 from Real

11

Case No. 1:11-cr-00355-MSK Document 1 filed 08/31/11 USDC Colorado pg 11 of 12
Estate Title, LLC’s American National Bank

account number XXXX2897 to Waunita

Weingart and Alois Craig Weingart’s

Guaranty Bank and Trust Company

account number XXXX1321.

A TRUE BILL

 _Ink signature on file in the Clerk’s Office

 FOREPERSON

JOHN F. WALSH

UNITED STATES ATTORNEY

By: s/ Linda Kaufman

Linda Kaufman

Assistant United States Attorney

United States Attorney’s Office

1225 Seventeenth Street, Suite 700

Denver, Colorado 80202

Telephone: (303) 454-0100

FAX: (303) 454-0401

E-mail: Linda.Kaufman@usdoj.gov

Attorney for Government

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