Date: October 5, 2020 Contact: email@example.com Sacramento, Calif. — Dickson Wing Kei Hung of Daly City, was sentenced today by U.S. District Judge William B. Shubb to six years and six months in prison and ordered to pay over $7 million in restitution for mail fraud. According to court documents, between March 2006 and November 2006, Hung masterminded a scheme to purchase residential properties in Stockton for use as marijuana grow houses. A total of 26 homes were purchased using recruited straw buyers. Ultimately, Hung, his co-defendants, and others submitted home mortgage loan applications to at least 10 financial institutions and mortgage lenders that contained materially false statements regarding the applicant's monthly income, employment, rental history, assets, and intent to reside in the acquired residences. None of the co-defendants or other straw buyers could afford to purchase the homes if their true income been known to the lenders. Of the 26 homes that were purchased under this scheme, 12 were found to have functioning indoor marijuana growing operations and eight were in the process of being converted into indoor marijuana growing areas. As a result of this scheme, the financial institutions and mortgage lenders were induced to grant approximately $15 million in residential home loans. This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Drug Enforcement Administration. Assistant U.S. Attorney Heiko P. Coppola prosecuted the case.