Mortgage broker given probation, not prison

WHEAT RIDGE - A mortgage broker avoided prison time when he was sentenced for forgery on Monday.

Zach Magalei and his brother, Issiah, were implicated in a mortgage fraud investigation last year.

Zach Magalei was arrested on charges of theft and forgery earlier this year, and later pleaded guilty to forgery.

He could have faced up to six years in prison, three years in prison for each count of forgery, but instead was given two years of probation.

Charges were later dropped against Issiah.

A Denver homeowner told 9Wants to Know that Zach Magalei faked a letter from a bank to get her a more expensive loan she didn't want.

Zach Magalei and a third brother, Shane, operated Superior Lending and Mavy Incorporated in Wheat Ridge.

In July 2008, Wheat Ridge Police officers served search warrants at homes and offices belonging to Shane and Zach Magalei. After a televised plea to find the brokerage offices' customers, the investigation spread to Denver, Aurora, Lakewood, Arapahoe County, Golden and Colorado Springs. Detectives estimate 100 homes are involved so far.

The Magalei brothers' names may be familiar. Two were standout football players for Wheat Ridge High School in the 1990s. Zach Magalei was recruited to play college football and Issiah Magalei played at Brigham Young University.