One of the leaders of the largest mortgage fraud scheme carried out in Hawaii has escaped from a federal prison in California.
Atlantica Kahaunani "Nani" Vaiagae walked away from a minimum-security federal prison camp in Victorville earlier this month while serving a 55-month prison term for conspiracy and wire fraud.
A warden at the U.S. Bureau of Prisons’ Federal Correctional Complex, Victorville, sent a letter to U.S. District Chief judge Susan Oki Mollway informing her that his staff reported Vaiagae missing on Sept. 8 during a 4 p.m. institution count. Warden Calvin Johnson says in the letter that he has informed the U.S. Marshals Service, the U.S. Probation Office and U.S. attorney of the escape.
The letter is dated Sept. 8. Court documents show that it was sent to Mollway on Sept. 9.
Vaiagae, 41, was known as Atlantica Tanuvasa when a federal grand jury returned indictments in 2010 against her and 13 others, including her sister and then-husband Lene Tanuvasa Jr., for conspiracy, wire and mortgage fraud and money laundering. Ten others were charged separately for their roles as straw buyers. Lene Tanuvasa later pleaded guilty to failing to report to authorities what he knew about the scheme.
The federal prosecutor said the scheme ran from 2003 to 2008 and involved about 400 loans. The perpetrators bought, sold and resold hundreds of properties on Oahu. No other mortgage fraud scheme involved even 100 loans or properties.
Of the remaining defendants, Vaiagae, who later divorced Tanuvasa and remarried, was the last to plead guilty. She received the longest prison term.
Mollway handed down the 55-month sentence in October and gave Vaiagae until March to turn herself due to concerns about the health of Vaiagae’s infant daughter.
In August, Vaiagae appealed her sentence, asking to serve the remainder of her term on home confinement so that she could care for her six children. The 9th U.S. Circuit Court of Appeals rejected Vaiagae’s request.