Wednesday, February 03, 2010

10 Charged in Multi Million Dollar Mortgage Fraud Case

Yamil L. Herrera, 38, Miami, Florida, Alain C. Hernandez, 41, Miami,Florida, Ricelda M. Hernandez, 44, Miami, Florida,  Maria G. Herrera, 40, Miami, Florida,  Ana G. Blanco, 35, Hialeah, Florida, Samantha Portales, 43, Miami, Florida,  Edel Martinez, 37, Miami, Florida, Osiris Garcia, 41, Miami, Florida, Luis R. Martinez, 42, Hialeah, Florida and Silvio De Paz, 46, Miami, Florida have been charged with one count of conspiracy to commit wire and bank fraud, in violation of Title 18, United States Code, Section 1349, eleven counts of substantive wire fraud, in violation of Title 18, United States Code, Section 1343, and five counts of substantive bank fraud, in violation of Title 18, United States Code, Section 1344.

Through this scheme, the defendants are alleged to have defrauded three financial institutions of more than $24 million in loan proceeds. If convicted, the defendants face a maximum statutory sentence of 30 years' for the conspiracy and bank fraud counts, and 20 years' imprisonment for the wire fraud counts.

More specifically, the Indictment alleges that the defendants were involved in the financing of six residential properties in Miami-Dade County, Florida. According to the Indictment, Yamil L. Herrera, Alain C. Hernandez and Ricelda Hernandez would identify properties that could be used to defraud lenders and then recruited friends and family to pose as purchasers of the properties. In addition, through a mortgage brokerage company called "Miami Dade Mortgage Professionals," Alain C. Hernandez, a licensed mortgage broker, and Ricelda M. Hernandez would prepare loan applications that contained fraudulent statements about the purchasers' employment, assets and intention to live in the properties. Ricelda M. Hernandez was also acting as a real estate agent.

Among the defendants who acted as straw purchasers for the properties were Maria G. Herrera, Samantha Portales, Edel Martinez, Osiris Garcia, Luis R. Martinez and Silvio De Paz. The defendants conducted all of the real estate closings at Ana G. Blanco's, Trinity Closing Group. Since the defendants were often re-selling or "flipping" the properties among themselves, Blanco would disburse the money owed to the seller before the closing, and the seller would transfer the money to the defendant who was purchasing a property, so that money could be used as a ‘down payment.' Once the property was purchased, the defendants allegedly arranged to make the mortgage payments until they could flip the property at an inflated purchase price. With the profits made from "flipping" the properties to each other, the defendants continued to buy additional properties and pay outstanding mortgage payments during the scheme. Eventually, the defendants ran out of money, stopped making the loan payments and the properties went into foreclosure. The foreclosures resulted in more than $7 million in losses to Washington Mutual, Impac Lending Group, Loan City and other lenders.

Jeffrey H. Sloman, United States Attorney for the Southern District of Florida, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and C. Ed Slagle, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General, Southeast Region, announced unsealing of the Indictment.

Mr. Sloman commended the efforts of the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation for their work in this case. This case is being prosecuted by Assistant U.S. Attorney Cristina Pérez Soto.

An Indictment is only an accusation, and the defendants are presumed innocent unless and until proven guilty.

mortgage fraud

1. WELL WHAT DO YOU KNOW ABOUT THAT!!! ITS THE SAME THING THAT HAPPENED TO PINE VILLAGE NORTH TOWN HOMES IN HARRIS COUNTY TEXAS.NOW THE PROPERTIES ARE SELLING FOR LESS THAN $1O,000.THIS GUY HAD OVER 200 OF THESE PROPERTIES KICKED BACK TO THE BANKS.THE FBI HOUSTON FAILED TO DO A DAMM THING WHEN THEY WERE TOLD OF THESE FLIPS AND FALSE APPRASIALS YEARS AGO.THEY WERE GIVEN COPIES OF THE FALSE TRANSACTIONS AND THEY SAT IN THE EVIDENCE LOCKER FOR A LONG TIME.AND YOU EXPECT PEOPLE TO TRUST YOU FOR PROTECTION?? NO WAY!!! HOW MANY OTHER PEOPLE HAVE REPORTED SCAMS AND NOTHING WAS DONE??

   Posted by  on  02/04  at  03:32 AM

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Today's News

Some Sources require Registration.   Marco Island Man Arrested in Ohio on Grand Theft Charge Naples News A man who claimed he was a broker is accused of bilking a long-time family friend out of more than $130,000. Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc. Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010. Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area. Lend America, VP Ashley Banned from FHA Housing Wire Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week. Countrywide Tries to Pin Blame on Insurer Court House News Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse. Investors Say They Were Swindled in Property Scheme Fox 13 Now Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches. Greenfield Man Accused of Housing Scam The Republic A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said. Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes. Ownership Rights to Get Another Look TBO.Com State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County. Previous Articles

TRIAL COVERAGE

Trial coverage provided by Anne Mitchell, Crazy Fish Realty. Follow Anne on Twitter. Thursday, February 18, 2010 F. Jeffrey Miller Trial - 1 Convicted, 3 Acquitted The jury deliberated for approximately 3 days after receiving their jury instructions. They asked one question: Does ‘common sense' allow us to deduce what the banks may or may not been influenced by in order to make a loan? Judge Julie Robinson responded by admonishing the jurors to read all of the instructions. The jury presented its' verdict... Read More... Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony As reported by Anne Mitchell, who viewed the trial: Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the... Read More... Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony Steve Middleton Testimony - Coverage Provided by Anne Mitchell The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's... Read More... Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination According to Anne Mitchell, who is present in court for the trial: Next Witness: Kelly Sanford Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in... Read More... Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued According to Anne Mitchell, who is viewing the trial: January 13, 2010 Witness: Rick Hayes Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John... Read More... More Trial Coverage

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All Foreclosure Information and Resources Housing Storm Calculated Risk Mortgage Lender Implode-O-Meter Home Gain Blog Rain City Guide Real Estate Tomato Blood Hound Blog Appraiser Active Fraud, Phishing and Financial Misdeeds The Collar - US News and World Report Georgia Bankruptcy Blog Fighting Fraud Newsday Real LI Matrix