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2 sentenced in mortgage fraud scheme


A federal judge Tuesday sentenced two people to 30 months and 46 months in prison for their roles in a mortgage fraud scheme that involved seven properties in Honolulu and Kona.

Visiting U.S. District Senior Judge Charles R. Breyer sentenced Sakara Blackwell, the real estate broker formerly known as Dawn Sakaguchi, to the 30-month prison term. It was Blackwell who handled the sales of the properties that still had mortgages on them to buyers who were unaware of the mortgages.

One of the unsuspecting buyers is an employee of the court’s Probation and Pretrial Services.

Breyer, who is from the Northern California District, handled Tuesday’s sentencing because all of the Hawaii District judges had recused themselves.

He handed the 46-month term to Marc Melton, who drafted all of the bogus documents the trio used to convince escrow companies that the properties were unencumbered by mortgages.

Breyer ordered Melton to forfeit to the government $129,307 authorities seized from a bank account associated to him and ordered Melton to pay, along with his co-defendants, $881,755 restitution.

The restitution amount is the difference between what the buyers paid for the seven properties and what the properties are worth.

Breyer ordered Blackwell to also pay restitution. What portion of the $881,755 for which she is jointly responsible will be determined at a later date. What will also be determined at a later date is who will receive the restitution.

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