Feds prosecuting Kan. foreclosure scam

An Israeli citizen arrested in California and accused of filing fraudulent bankruptcy petitions in Kansas as part of a $50 million scheme to bilk homeowners facing foreclosure will remain behind bars until his trial, U.S. Attorney Eric Melgren said.

Melgren said Tuesday that Isaac Yass, 41, was arrested last week in Los Angeles after being indicted in Topeka on six counts of mail fraud and six counts of aggravated identify theft. At the time, a federal magistrate in Los Angeles said Yass could be released on $500,000 cash or secured bond.

But U.S. District Judge Julie Robinson in Topeka ruled Monday that Yass would remain in custody until his trial after prosecutors said he was a flight risk. They said Yass, also known as Itsik Yass, has a work permit for the United States. They said he presented false identification papers in 2005 and was convicted of perjury and is fighting deportation proceedings.

‘We know of no legal employment or occupation the defendant has been involved in,’ Melgren said in a written statement Tuesday. ‘He travels freely and has access to large sums of money. He has no ties to the United States.’

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