Volodymyr Dubinsky Wanted in California Real Estate Fraud Investigation
Federal Mail Fraud Case Involving Straw Buyers Has Remained Open Since 2012
Volodymyr Dubinsky is wanted by the Federal Bureau of Investigation on a federal mail fraud charge connected to a California mortgage fraud scheme involving residential properties and straw buyers. Federal authorities say Dubinsky and his brother, Leonid Doubinski, built, developed, and sold real estate in California between August 2006 and May 2008. As the real estate market declined, investigators say the brothers recruited relatives, employees, and associates with good credit to act as straw buyers for residential properties.
Federal arrest warrants were issued for both brothers on September 14, 2012, by the United States District Court for the Eastern District of California in Sacramento. More than a decade later, both men remain wanted in connection with the federal case. The FBI states that the brothers are thought to be residing in Ukraine.
Real Estate Development During a Declining Market
Dubinsky and his brother were involved in building, developing, and selling California real estate during a turbulent period for the American housing market. Their activities occurred from August 2006 through May 2008, spanning the transition from the housing boom into a severe national real estate downturn. As property values declined and buyers became more difficult to find, developers throughout California faced growing financial pressure.
Federal authorities say the brothers responded to those conditions by recruiting people with good credit to purchase residential properties. The individuals included members of their own family as well as employees and associates. Investigators identified those purchasers as straw buyers used to facilitate property sales.
A straw buyer can appear to a lender to be the genuine purchaser of a property while the actual circumstances surrounding the transaction are different from what has been represented. Someone with a strong credit history can help secure mortgage financing that might otherwise be unavailable. When false information is provided to a lender about the buyer, finances, occupancy, or nature of the transaction, the resulting deal can become part of a mortgage fraud investigation.
Family Members, Employees and Associates Recruited
The federal case centers on the brothers' use of people within their personal and professional networks. Rather than relying exclusively on independent buyers from the ordinary real estate market, authorities say Dubinsky and Doubinski recruited relatives, employees, and associates who had favorable credit histories. Those individuals could then be presented to mortgage lenders as qualified purchasers.
Good credit was important because lenders rely heavily on a borrower's financial history when deciding whether to approve a mortgage. A prospective borrower with established credit can appear less risky and may qualify for financing that another individual could not obtain. Federal investigators say the brothers took advantage of those qualifications to facilitate sales of residential properties.
The arrangement became particularly significant as the housing market deteriorated. Properties that might once have sold through ordinary market demand became increasingly difficult for developers to move. Recruiting straw buyers provided another method of completing transactions and obtaining mortgage financing for those homes.
Part of a Larger Mortgage Fraud Investigation
The investigation involving Dubinsky and his brother ultimately became part of a broader Sacramento-area federal mortgage fraud prosecution. Federal authorities described the operation as a “builder bailout” scheme involving at least 19 residential properties. Four federal indictments charged nine individuals with participating in different aspects of the broader operation.
The defendants included developers, straw buyers, and professionals involved in real estate and mortgage transactions. Investigators examined how the homes were sold, how buyers were recruited, what information was provided to lenders, and how the resulting mortgage financing was obtained. The investigation required cooperation between federal prosecutors, the FBI, and Internal Revenue Service Criminal Investigation.
While Dubinsky and his brother remained fugitives, the government continued prosecuting other individuals connected to the investigation. Several defendants eventually pleaded guilty or were convicted, allowing portions of the broader case to move forward despite the brothers remaining outside federal custody.
False Information Provided to Mortgage Lenders
The broader federal investigation found that mortgage applications connected to the operation contained false information about straw buyers. Authorities identified misrepresentations concerning income, assets, and whether buyers intended to occupy properties as their primary residences. These details are important because mortgage lenders use them when evaluating whether a borrower qualifies for financing.
A borrower's income helps determine whether monthly mortgage payments can realistically be made. Assets can demonstrate whether a buyer has sufficient financial reserves or money available for a down payment, while occupancy information can influence the terms and risk associated with a mortgage. False information in any of these areas can prevent a lender from accurately assessing the transaction.
The government maintained that the applications made the borrowers appear more qualified or the transactions appear different from their actual circumstances. Mortgage financing could then be issued based on information the lender believed to be accurate. Those alleged misrepresentations became central to the broader federal fraud prosecution.
The Builder-Bailout Model
A builder-bailout mortgage fraud scheme typically occurs when a developer is struggling to sell properties and uses fraudulent transactions to move unsold inventory. During a strong housing market, newly constructed homes may sell quickly enough for developers to repay construction financing and continue building. When prices collapse and buyers disappear, those same properties can become major financial liabilities.
Using straw buyers can create the appearance that legitimate sales are continuing. If those buyers have good credit, lenders may approve mortgages that allow the developer to complete transactions and receive proceeds from the property sales. Problems arise when the lender is not given truthful information about the buyers or the actual structure of the transactions.
The federal investigation involving Dubinsky developed during the collapse of the American housing market, when mortgage fraud had become a major concern for federal authorities. Falling property values could magnify losses because lenders that foreclosed on fraudulent mortgages could be left with homes worth significantly less than the outstanding loan balances.
Other Defendants Faced Federal Prosecution
The broader investigation did not end when the Dubinsky brothers became fugitives. Federal prosecutors continued pursuing other individuals accused of participating in the mortgage transactions. Several defendants eventually entered guilty pleas, while others went to trial.
Edward Khalfin and Robin Dimiceli were convicted by a federal jury in November 2015 on all charges against them in connection with the broader builder-bailout investigation. Khalfin, a licensed mortgage broker, was convicted of multiple counts of mail fraud and making false statements on loan applications. Dimiceli, a licensed real estate salesperson, was also convicted on multiple federal counts.
Those convictions demonstrated that the underlying federal investigation continued producing results years after the original indictments. The cases also showed the different roles that can exist within a mortgage fraud operation, including developers, buyers, brokers, and real estate professionals. Dubinsky and his brother, however, remained outside federal custody.
Federal Arrest Warrant Issued in Sacramento
On September 14, 2012, a federal arrest warrant was issued for Volodymyr Dubinsky in the United States District Court for the Eastern District of California in Sacramento. His brother, Leonid Doubinski, was also charged with mail fraud and became the subject of a federal arrest warrant on the same date. Both warrants remain connected to the California mortgage fraud investigation.
The FBI's Sacramento Field Office is responsible for the wanted notices. Federal authorities continue to make photographs and identifying information available to assist with locating the brothers. Their continued appearance in FBI wanted records means the government is still seeking to bring them before the federal court where their cases are pending.
The length of time since the warrants were issued does not automatically resolve the pending federal cases. If either brother is arrested, the criminal proceedings can continue through the federal court system. Their suspected residence outside the United States has made the investigation an international fugitive matter.
Who Is Volodymyr Dubinsky?
Volodymyr Dubinsky was born on January 28, 1965, in Ukraine and is a Ukrainian national. The FBI describes him as approximately 5 feet 6 inches tall and weighing about 220 pounds. His listed occupations include real estate development and internet business.
Federal authorities have associated numerous alternate names with Dubinsky. These include Vlad Dubinsky, Vladimir Dubinsky, Voldmyr Dubinsky, Volodymyr Gerchenkroi, Volodymyr M. Dubinsky, and Volodymyr Doubinski. The variations are significant because people who encounter him may know him under a different spelling or version of his name.
Dubinsky was formerly associated with Folsom, California. That connection corresponds with the Sacramento-area focus of the federal investigation and his previous involvement in California real estate development. The FBI has released photographs and identifying information to assist authorities and members of the public in recognizing him.
His Brother Leonid Doubinski Is Also Wanted
Leonid Doubinski remains wanted in connection with the same federal mortgage fraud case. Authorities say the brothers worked together in developing and selling California real estate before recruiting straw buyers as the market deteriorated. Both were charged with mail fraud, and federal arrest warrants were issued for them on the same day.
The brothers' surnames appear with different spellings in their primary FBI listings. Leonid is listed as “Doubinski,” while Volodymyr is listed as “Dubinsky,” although variations of both spellings appear among their aliases. This distinction can be important when searching records or attempting to identify either fugitive.
The FBI currently states that both brothers are thought to be residing in Ukraine. Their suspected location has transformed the original California financial crime investigation into a long-running international search.
Brothers Believed to Be in Ukraine
Federal authorities believe Volodymyr Dubinsky and Leonid Doubinski are residing in Ukraine. The FBI does not provide a specific current city or address for either man in the wanted information. Their location outside the United States has complicated efforts to bring them before the federal court in Sacramento.
International fugitive investigations can depend heavily on cooperation between governments and law-enforcement agencies. Citizenship, location, extradition laws, international agreements, and the circumstances under which a fugitive is encountered can all affect whether an arrest and return to the United States can occur. International travel may also create new opportunities for authorities to locate someone subject to an outstanding warrant.
Information concerning the brothers' current residences, employment, businesses, travel, or associates could help authorities establish their whereabouts. Anyone outside the United States with relevant information can contact an American Embassy or Consulate or provide information directly to the FBI.
More Than a Decade as a Federal Fugitive
Dubinsky has remained wanted since September 2012, making the case a long-running federal fugitive investigation. Over that period, photographs can become outdated, people can relocate, businesses can change, and new personal or professional relationships can develop. Aliases and identifying information therefore become increasingly important as the years pass.
His history in real estate development and internet business may also provide useful context for people who have encountered him professionally. Someone who knows him under one of his alternate names may not immediately recognize that the individual is wanted in the United States. Publishing those aliases alongside photographs can help connect newer information with the older federal case.
The unresolved status of the warrant means information can remain valuable even years after the original investigation. A current address, business connection, telephone number, travel pattern, or other identifying information could help authorities determine whether a lead relates to the wanted individual.
Volodymyr Dubinsky Remains Wanted
Volodymyr Dubinsky remains wanted on a federal mail fraud charge connected to the California mortgage fraud investigation. Federal authorities say he and his brother developed and sold real estate from August 2006 through May 2008 and recruited relatives, employees, and associates with good credit to act as straw buyers as the housing market declined. The broader investigation eventually involved at least 19 residential properties and numerous defendants.
His federal arrest warrant has remained outstanding since September 14, 2012. The FBI believes Volodymyr Dubinsky and Leonid Doubinski are residing in Ukraine and continues seeking information concerning their whereabouts. Anyone with relevant information should provide it directly to appropriate law-enforcement authorities and should not attempt to confront, follow, detain, or apprehend either fugitive.
