Rito Miguel Diaz, Jr, has been sentenced by Judge Philip S. Gutierrez to the custody of the Bureau of Prisons for 24 months as charged in Count One of the Four-Count sealed Indictment. Diaz, Jr was also sentenced to supervised release for three years, a special assessment of $100, and ordered to pay restitution in the amount of $1,254,667. Diaz, Jr was found jointly and severally liable with co-participants, Rito Miguel Diaz and Rosemary Diaz, for the amount of restitution ordered. Diaz Jr was remanded at the sentencing hearing to immediately begin serving his sentence.
Diaz Jr pled guiltyto the indictment on December 14, 2006. According to the indictment, Diaz, Jr, and Rito Miguel Diaz, Sr, were real estate agents for Familia Realty, Realty World, or Network Realty. From September 1998 to January 2002, Diaz Sr and Diaz Jr, along with their mother Rosemary Diaz, provided or created fraudulent identification, employment, credit and other documents used by unqualified borrowers to obtain FHA-insured mortgages. HUD realized losses in excess of $900,000 after 18 mortgages defaulted.