California man extradited from Spain to face federal charges in alleged mortgage fraud scheme

Calif. mortgage fraud suspect returns from Spain

SACRAMENTO, Calif. — A 28-year-old Sacramento man who led authorities on an international manhunt has been returned to California to face federal charges in an alleged mortgage fraud scheme.

Garret Griffith Gililland III, a former bodybuilder with heavily tattooed arms, entered a not guilty plea Friday through his attorney in U.S. District Court in Sacramento.

The former bodybuilder is charged with 24 counts in an alleged $100 million mortgage fraud ring.

Court documents say he and two associates had defrauded investors and mortgage companies since 2006. The fraudulent deals involved 500 homes and condominiums in California, Florida, Nevada, Illinois, Colorado and Arizona, according to Internal Revenue Service affidavits.

Gililland fled in June 2008 with at least $250,000 in cash. IRS and FBI agents who searched his mansion in Chico, about 90 miles north of the state capital, found a custom-made motorcycle, a garage full of marijuana and a number of flat-screen televisions, according to court documents reviewed by The Sacramento Bee.

Gililland, his wife and their 3-year-old daughter fled to Colombia, where they hoped to open a nightclub, and then to Spain, where they settled in Sitges, a village along the Mediterranean coast. They were arrested there last October.

Gililland’s wife, Nicole Magpusao, remains in Spain with their daughter and is fighting extradition.

After Gililland lost his appeal for asylum, he refused to cooperate with U.S. marshals, scuffled with his jailers and had to be strapped into a wheelchair to prepare for the flight back to the U.S. A bail hearing is scheduled for Wednesday.

Two others also have been charged in the mortgage fraud investigation: Christopher Warren, 26, of Folsom, and Scott Cavell, 27, of Sacramento.

Warren fled the country but was captured in February as he tried to re-enter the U.S. from Canada. He had $70,000 stuffed into his boots.

Cavell remains a fugitive.