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The Honolulu Advertiser

Posted on: Monday, December 30, 2002

Pair to be sentenced for mail fraud

Advertiser Staff

Sentencing has been set for two women who pleaded guilty in federal court to three counts of mail fraud in connection with a scheme to take money from people who were facing foreclosure or were in financial distress.

Arlene Estacion, 42, also known as Arlene Nii, pleaded guilty on Thursday to the three counts in U.S. District Court. On Friday, Tracy Kuhns, 32, pleaded guilty to the same charges.

Sentencing for both women has been set for April 28 before U.S. District Judge Helen Gillmor. Each faces a maximum five years in prison, a $250,000 fine, and restitution on each of the three counts.

U.S. Attorney Ed Kubo said Estacion and Kuhns admitted that they took part in a fraudulent "advance fee" scheme through businesses called HomeSavers-Hawai'i and Hawai'i International Funding Co. Kubo said the women acknowledged that they sought clients who were facing foreclosure on home mortgages and promised to assist them in arranging loans if they would pay a fee in advance.

The two also promised that the advanced fee would be refunded if they could not secure the loans. But after receiving thousands of dollars in payments from dozens of clients, Kubo said, Estacion and Kuhns did not secure the loans or refund the fees.

Instead, he said, they admitted to spending the money for their own purposes.

The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Craig Nakamura.