Man Gets 16 Years for Mortgage Fraud Scheme Involving Undisclosed Buyer Incentives and Kickbacks

Allison Tussey —  October 18, 2013 — Leave a comment

Quelyory A. Rigal, 38, Homestead, was sentenced to 200 months in prison, followed by five years of supervised release by U.S. District Judge William J. Zloch.

Rigal was indicted with seven other defendants in Case No. 12-60088-CR-Zloch for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The indictment charged defendant Rigal with conspiracy to commit wire fraud and mail fraud, as well as substantive counts of wire fraud and mail fraud. Defendant Rigal was found guilty on all counts charged in the indictment.

The other defendants were: Juan Carlos Sanchez, New York, N.Y., Sandra P. Campo, Colombia, Osbelia Lazardi, Southwest Ranches, FL, Dayanara Montero, Miramar, FL, Edward R. Mena, Miami, FL, Celeste Mota, Fort Myers, FL, and David Arboleda, Doral, FL.

With the exception of Rigal who proceeded to trial, all other defendants plead guilty to conspiracy to commit mail and wire fraud.

Defendant Sanchez was sentenced to 180 months in prison and three years of supervised release. Defendants Lazardi was sentenced to 25 months in prison and three years of supervised release. Defendant Campo was sentenced to 70 months in prison and five years of supervised release. Defendant Mena was sentenced to 54 months in prison and three years of supervised release. Defendant Arboleda was sentenced to 30 months in prison and three years of supervised release. Defendant Montero was sentenced to 22 months in prison and three years of supervised release. Defendant Mota was sentenced to five years of supervised release.

According to the indictment, from January 2007 through November 2008, the defendants conspired to recruit individuals willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information as to material facts regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators created false documents to support the mortgage applications. Once the loans closed, the conspirators diverted portions of the mortgage proceeds for their personal use and benefit.

The indictment alleges that the conspirators obtained approximately $39 million in 163 fraudulent mortgage loans at Marina Oaks, resulting in $34 million in losses to the various lenders including Fannie Mae, which reported losses over $4.1 million to date, while Freddie Mac faces potential exposure of an additional $8.5 million.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General, announced the sentence.

Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency, Office of the Inspector General, as the lead investigative agency in the prosecution of Rigal, and IRS-CI and the Broward Sheriff’s Office for their participation in this investigation. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.

Allison Tussey

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