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Press Release

California Man and Arizona Woman Sentenced For Making False Statements to a Financial Institution

For Immediate Release
U.S. Attorney's Office, Eastern District of Louisiana

NEW ORLEANS U.S. Attorney Peter G. Strasser announced that JARED CASTELLAW, age 34, of Alpine, California, and VALERIE SCHONES, age 54, of Tucson, Arizona, were sentenced on Wednesday, July 17, 2019 for their role in making false statements to a financial institution.

According to court documents, beginning in or around October 2008 and continuing to on or about May 2009, JARED CASTELLAW and VALERIE SCHONES, along with co-defendant Patrick Healey, made false statements to the Federal Housing Administration “FHA” in order to assist low-income borrowers in qualifying for FHA insured loans that they would not otherwise have qualified for. Healey and CASTELLAW are former employees of an undisclosed entity, ABC Homes, LLC, located in St. Bernard Parish.  SCHONES worked for XYZ Financial as a loan officer. In total, due to the acts of the defendants, the FHA suffered a loss in excess of $852,415.

Both CASTELLAW and SCHONES were sentenced to time served, supervised release of 5 years, a special assessment of $100, and ordered to pay restitution in the amount of $852,415.16.

U.S. Attorney Strasser praised the work of the Department of Housing and Urban Development, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.

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Updated July 18, 2019

Financial Fraud