Frank A. Rubino, ESQ.

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Defendants confess in mortgage fraud case

Two defendants in a high-profile mortgage fraud case confessed to their complicity in the scheme, according to a recent statement from s U.S. Attorney.

The two defendants admitted that they had conspired together to willfully defraud multiple financial institutions. This was a part of a multi-million dollar mortgage fraud scheme that involved a network of straw buyers and fake documents.

The defendants had been pursuing illegal profits on over-developed condominiums. Both men, one 53 and one 44, pleaded guilty to the charges they're facing in a federal court. Those charges are conspiracy to commit wire fraud and conspiracy to commit money laundering.

According to court documents and statements, the defendants had arranged with straw buyers to purchase homes at highly inflated prices. Although those straw buyers had good credit, they did not have the financial resources they would need to get mortgage loans for the homes.

However, the two defendants in the case supplied the straw buyers with fake documents. These were designed to make those buyers seem to have more income and better employment than they actually did. The hope was to increase their apparent creditworthiness so they would get the oversized loans they were applying for.

When the loans were obtained, the defendants and their co-conspirators had the money deposited into accounts that they controlled. One defendant alone received $241,789.98 in proceeds from the mortgage fraud.

The defendants face sentences of up to 30 years for the wire fraud charge, and up to 10 years for the money laundering charge.

Mortgage fraud legal cases affect lenders and buyers throughout states like Florida, which has a high number of real estate transactions every day. Cases of mortgage fraud should be investigated comprehensively to determine all of the important facts that might affect court decisions. Defendants in such cases deserve a fair and balanced trial, including the right to appeal unfavorable verdicts. Attorneys can help to ensure their rights are not violated during the court process.

Source:  THV 11, "John Bingaman admits role in mortgage fraud scheme" Lindsey Tugman, Sep. 24, 2013

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Frank A. Rubino, Esq.
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