California Mortgage Fraud Case: Leonid Doubinski Remains Wanted More Than a Decade After Federal Warrant

Real Estate Developer and His Brother Are Believed to Be Residing in Ukraine

Leonid Doubinski remains wanted by the Federal Bureau of Investigation on a federal mail fraud charge connected to a California mortgage fraud operation that emerged during the collapse of the real estate market. Federal authorities say Doubinski and his brother, Volodymyr Dubinsky, built, developed, and sold residential properties in Northern California before recruiting family members, employees, and associates with good credit to serve as straw buyers when the housing market declined. Federal arrest warrants for both brothers were issued on September 14, 2012, and the FBI currently states that they are thought to be residing in Ukraine.

The investigation extended beyond the two brothers and ultimately involved numerous defendants connected to what federal authorities described as a Sacramento-area “builder bailout” mortgage fraud scheme. The broader case involved at least 19 homes and included allegations that loan applications submitted to lenders contained false information about buyers' income, assets, and intentions to occupy the properties. Other participants in the broader operation were subsequently convicted or pleaded guilty, while Leonid Doubinski and Volodymyr Dubinsky remained fugitives.

Real Estate Development During the Housing Boom

From August 2006 through May 2008, Doubinski and his brother were involved in building, developing, and selling real estate in California. Federal authorities identified properties in Carmichael, Sacramento, and Copperopolis as part of their development activities. Their business operated during a period of dramatic change in the American housing market, as the real estate boom gave way to falling property values and increasingly difficult conditions for developers attempting to sell newly constructed homes.

Developers can face substantial financial pressure when completed properties remain unsold because expenses associated with construction financing, taxes, insurance, maintenance, and other obligations can continue accumulating. According to the federal case, the brothers responded to the declining market by recruiting people with strong credit histories to purchase residential properties. Investigators say these individuals were used as straw buyers rather than ordinary purchasers independently seeking homes.

The alleged strategy allowed properties that had become difficult to sell to appear to have legitimate qualified buyers. The buyers' good credit made them more attractive to mortgage lenders, but federal investigators say the loan applications did not accurately represent the circumstances surrounding the purchases. Those transactions became the foundation of the federal mortgage fraud investigation.

Family Members and Associates Recruited as Straw Buyers

Federal authorities say Doubinski and his brother recruited family members, employees, and associates with good credit to act as straw buyers. A straw buyer is someone whose identity and financial qualifications are used to obtain property or financing while concealing or misrepresenting important facts about the true nature of the transaction. In mortgage fraud cases, the person's creditworthiness can be used to obtain financing that might otherwise be unavailable.

The broader federal investigation identified several people who served as straw buyers in transactions connected to the scheme. Authorities said the participants included individuals with personal, professional, and family relationships to those involved in the real estate operation. The use of people with established credit histories made the mortgage applications appear stronger to financial institutions evaluating the loans.

The investigation eventually resulted in four separate indictments involving nine individuals. Doubinski and his brother were charged alongside mortgage and real estate professionals who authorities said assisted with obtaining financing for the properties. The involvement of people working within the real estate and mortgage industries added another layer to the operation.

Mortgage Applications Contained False Information

According to federal authorities, loan applications submitted in connection with the broader scheme contained false statements concerning the straw buyers. Investigators said the applications misrepresented buyers' income, assets, and intentions to occupy properties as their primary residences. Those details can be important when lenders determine whether to approve a mortgage and what conditions should apply to the loan.

Occupancy information can be particularly significant because lenders may evaluate a property intended to be a borrower's primary residence differently from an investment property. Income and asset information is also used to determine whether a borrower has the financial resources necessary to repay a mortgage. Providing false information in those areas can therefore affect a lender's decision to approve hundreds of thousands of dollars in financing.

Licensed mortgage and real estate professionals were also implicated in the broader investigation. Federal authorities said mortgage broker Edward Khalfin and real estate professionals Robin Dimiceli and Diana Woods assisted by submitting loan applications for straw buyers. Khalfin and Dimiceli were later convicted in federal court on charges connected to the scheme.

At Least 19 Homes Involved

When federal authorities announced the indictments in September 2012, they described the broader investigation as involving the purchase of at least 19 homes. The properties were connected to multiple defendants and several separate indictments. The number of homes demonstrates that investigators were examining a continuing series of real estate transactions rather than a single questionable mortgage.

The alleged operation developed as the California real estate market deteriorated. Properties that had once been expected to sell in a strong housing market became increasingly difficult to move, creating pressure on builders and developers. Federal authorities characterized the resulting activity as a builder-bailout mortgage fraud scheme because straw buyers were allegedly used to purchase homes developers were having difficulty selling.

By placing buyers into the properties through mortgage financing, the developers could complete sales that might not otherwise have occurred. The problem, according to federal authorities, was that lenders were not receiving accurate information about the borrowers or circumstances surrounding those transactions. The resulting investigation examined both the developers and the professionals involved in obtaining the loans.

Nine People Indicted in the Broader Investigation

A federal grand jury returned four indictments in September 2012 charging nine people in connection with the broader mortgage fraud investigation. Leonid Doubinski and Volodymyr Dubinsky were among those charged, along with several relatives, associates, and real estate professionals. The indictments were subsequently unsealed as federal authorities announced the investigation.

Other defendants included Svetlana Dubinsky, Serge Doubinski, Zinayda Chekayda, Edward Khalfin, Robin Dimiceli, Diana Woods, and Kory Schmidli. The cases were divided among several federal indictments, reflecting the different roles authorities attributed to the participants. Some defendants were accused of serving as straw buyers, while others were connected to the preparation or submission of mortgage applications.

The investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Federal prosecutors from the Eastern District of California handled the resulting criminal cases. While several defendants eventually faced trial or entered guilty pleas, the two brothers remained outside federal custody.

Other Defendants Convicted

The broader investigation continued after the Doubinski brothers became fugitives. In November 2015, a federal jury convicted Edward Khalfin and Robin Dimiceli on all counts against them. Khalfin was convicted of 12 counts of mail fraud and 11 counts of making false statements on loan applications, while Dimiceli was convicted of six mail fraud counts and six counts involving false statements on loan applications.

Federal authorities said Khalfin operated Bay Financial Co. and worked as a licensed mortgage broker. Dimiceli was a licensed real estate salesperson associated with Trinity Mortgage Capital, which was affiliated with Windsor Mortgage Capital. Their professional roles placed them in positions to participate in preparing and submitting mortgage applications associated with the straw buyers.

Several other defendants connected to the investigation also pleaded guilty. Those developments allowed federal prosecutors to continue resolving portions of the case even while Leonid Doubinski and Volodymyr Dubinsky remained outside the reach of the court. The brothers continued to be identified as fugitives throughout those proceedings.

Federal Arrest Warrant Issued in Sacramento

Federal arrest warrants for Leonid Doubinski and Volodymyr Dubinsky were issued on September 14, 2012, by the United States District Court for the Eastern District of California in Sacramento. Both brothers were charged with mail fraud in connection with the mortgage fraud investigation. Those warrants remain associated with their current FBI wanted notices.

The use of mail fraud charges reflects the federal nature of the investigation into the transactions. Mortgage fraud schemes can generate extensive documentation and communications involving lenders, brokers, title companies, borrowers, and other parties. When mail or interstate communications are used to carry out a fraudulent operation, federal criminal statutes can apply.

The FBI's Sacramento Field Office continues to list both brothers among its wanted individuals. Their cases also remain included on the FBI's national white-collar crime wanted list, demonstrating that the search remains active years after the original warrants were issued.

Who Is Leonid Doubinski?

Leonid Doubinski was born on April 19, 1959, in Russia and is a Russian national. The FBI describes him as approximately 5 feet 6 inches tall and weighing around 200 pounds, with gray hair and dark eyes. His federal wanted materials include photographs of both Leonid and his brother to assist with identification.

The FBI identifies several aliases associated with him, including Lenny Doubinski, Leonid Dubinsky, and Lenny Dubinsky. Variations in the spelling of the family name are particularly important because Leonid uses the spelling “Doubinski,” while his brother is officially listed by the FBI as Volodymyr “Dubinsky.” Someone who encounters either man may therefore recognize a different spelling than the one appearing on the federal warrant.

Doubinski was formerly associated with Copperopolis, California, while his brother was formerly associated with Folsom. Their previous connections to Northern California correspond with the locations where federal authorities say they conducted their real estate development activities.

Volodymyr Dubinsky Also Remains Wanted

Volodymyr Dubinsky remains wanted alongside his brother in connection with the same mortgage fraud investigation. He was born on January 28, 1965, in Ukraine and is a Ukrainian national. The FBI lists his occupations as real estate development and internet business and describes him as approximately 5 feet 6 inches tall and weighing around 220 pounds.

Federal authorities list numerous aliases for Volodymyr, including Vlad Dubinsky, Vladimir Dubinsky, Voldmyr Dubinsky, Volodymyr Gerchenkroi, Volodymyr M. Dubinsky, and Volodymyr Doubinski. Like his brother, he remains subject to the federal arrest warrant issued in September 2012. The FBI states that both men are thought to be residing in Ukraine.

The brothers' cases remain closely connected because federal authorities accuse them of jointly developing the properties and recruiting the straw buyers. Their photographs appear together in FBI wanted materials, and both are sought by the Sacramento Field Office.

Understanding a Builder-Bailout Mortgage Scheme

A builder-bailout scheme can develop when builders or developers have properties they are unable to sell through normal market conditions. Rather than reducing prices, absorbing losses, or continuing to hold the properties, participants may attempt to arrange sales using buyers who would not otherwise purchase the homes. Fraud occurs when lenders are provided materially false information to obtain financing for those transactions.

Straw buyers can be particularly valuable to such an operation when they possess strong credit histories. Their names and financial profiles can help loan applications satisfy underwriting requirements even when the actual circumstances of the purchase are different from what the lender is told. False statements about income, assets, down payments, occupancy, or the source of funds can prevent lenders from accurately evaluating the risks associated with the mortgage.

These transactions can create substantial losses when borrowers stop making payments and properties enter foreclosure. During a declining real estate market, the collateral securing the mortgage may also be worth considerably less than the amount originally loaned. Mortgage fraud during the 2007-2008 housing crisis consequently became a major focus for federal investigators.

Brothers Thought to Be Residing in Ukraine

The FBI currently states that Leonid Doubinski and Volodymyr Dubinsky are thought to be residing in Ukraine. Their suspected presence outside the United States has turned what began as a California mortgage fraud prosecution into a long-running international fugitive investigation. More than a decade has passed since federal arrest warrants were issued for the brothers.

International fugitive cases can remain active for many years, particularly when suspects reside in countries where immediate apprehension and return to the United States may be difficult. Changes in residence, citizenship, travel, and international conditions can all affect attempts to locate and arrest a wanted person. An outstanding federal warrant nevertheless remains enforceable if the fugitive becomes accessible to American or cooperating authorities.

Information concerning the brothers' current residences, travel, business relationships, or other activities could assist investigators in determining their whereabouts. Because the FBI believes they may be outside the United States, people with information abroad are directed to contact the nearest American Embassy or Consulate.

Leonid Doubinski Remains a Federal Fugitive

Leonid Doubinski remains wanted on a federal mail fraud charge arising from the California mortgage fraud investigation. Federal authorities say he and his brother developed and sold real estate from August 2006 through May 2008 before recruiting relatives, employees, and associates with good credit to serve as straw buyers as the housing market declined. Their alleged operation became part of a broader federal investigation involving at least 19 homes and nine defendants.

The federal arrest warrant for Doubinski has remained outstanding since September 14, 2012. The FBI currently believes Leonid Doubinski and Volodymyr Dubinsky are residing in Ukraine and continues to list both brothers as wanted. Anyone with information concerning their whereabouts should contact appropriate law enforcement rather than attempting to approach, follow, detain, or apprehend them.

Sources

FBI — Leonid Doubinski Official Wanted Profile

FBI — Sacramento-Area Builder-Bailout Mortgage Fraud Investigation