$40 million mortgage fraud scheme
Twenty residents of Florida have been charged by U.S. Attorney Wifredo A. Ferrer for their alleged participation in a complex $40 million mortgage fraud scheme run between 2006 and 2008, according to court documents. The scheme involved real estate professionals at every stage of the process from Realtors to mortgage brokers, a bank manager, a title agent, and appraiser that falsified loan documents on over 200 home equity lines of credit loans in the Miami area.
Borrowers’ income, employment, assets and bank statements were falsified and millions of dollars were disbursed to the co-conspirators through the title agent. Each conspirator has been charged with conspiracy to commit bank fraud, along various mortgage charges that mean maximum sentences of 30 years of jail time per conspirator.
“Even by South Florida fraud standards, today’s prosecution is shocking,” Ferrer said in a statement. “Never before have we seen so many real estate and bank industry professionals charged in a single indictment. In addition, the defendants’ $40 million fraud spanned two years and resulted in $20 million in actual losses to the victim banks. Our commitment to stomp out mortgage fraud is unwavering.”
Miami-Dade Police Director James K. Loftus added, “Though we are pleased with the outcome of this investigation, we recognize that the indictment of this organization is only a small part of a systemic, ongoing criminal enterprise. We will remain vigilant in our pursuit of these offenders.”
The 20 alleged co-conspirators
Named in the indictment (with Alina Rubi and Camilo Garcia allegedly the ring leaders):
- Camilo Garcia – mortgage broker and Realtor (brother of Alina)
- Dianelys Garcia – mortgage broker and Realtor (wife of Camilo)
- Galia Fernandez, Jr. – mortgage broker and Realtor
- Luis Pardo Dieguez – Realtor and mortgage employee, role unclear
- Jose Raul Hernandez – Realtor (unclear if related to Ivis)
- Jose Manuel Pardo – Realtor
- Juan Prieto – Realtor
- Alina Rubi – mortgage broker (sister of Camilo)
- Ivette Carreno – bank manager and loan officer
- Sylvia Zagales – title agent
- Pedro Rubi – mortgage broker
- Ivis R. Hernandez – mortgage broker
- Johny Hernandez – mortgage broker
- Mayra Martinez Suarez – mortgage broker
- Flavia Perez – mortgage broker
- Yovanis Obregon Jimenez – appraiser
- Sandra Rodriguez – acted as a buyer
- Laura Diaz – acted as a buyer
- Sheena Eizmendiz – acted as a buyer
- Jose Antonio Diaz – acted as a buyer
