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2 Defendants Guilty of Mortgage Fraud Scheme

Allison Tussey —  September 11, 2012 — Leave a comment

Raysean K. Richardson, 27, New York, New York, was convicted by a jury and Keasha Rogers, 36, Atlanta, Georgia, plead guilty for their involvement in several multi-jurisdictional mortgage fraud schemes. 

Richardson was found guilty of all counts following a week-long trial in Pensacola, Florida, before Chief United States District Judge M. Casey Rodgers. In September 2011, a federal grand jury in Pensacola returned a three-count indictment against Richardson charging conspiracy to commit mail fraud, mail fraud, and conspiracy to commit money laundering. A jury found that Richardson obtained fraudulent mortgage loans of $617,500 to purchase a Navarre residence in July 2007.

As part of the conspiracy, in a series of financial transactions following the loan closing, Richardson received approximately $135,961 in kickbacks. Evidence at trial also showed that, during the two and a half months leading up to Richardson‘s fraudulent purchase of the Navarre home, Richardson obtained fraudulent mortgages of $449,800 for a two unit residence in Los Angeles, California, and fraudulent mortgages of $536,000 for two townhomes in Sarasota, Florida. Richardson faces up to 20 years in prison on each count and is scheduled for sentencing on November 19, 2012.

Rogers pled guilty before Senior United States District Court Judge Lacey Collier. In December 2011, a federal grand jury in Pensacola returned a six-count indictment against Rogers and a co-defendant, charging each with mail fraud, conspiracy to commit mail fraud, and conspiracy to commit money laundering. In a statement to the court as part of her plea, Rogers admitted to obtaining fraudulent mortgage loans to purchase a residence in Navarre.

As part of the conspiracy, Rogers received approximately $47,000 in kickbacks from the $630,000 loan she obtained to purchase the home. Rogers pled guilty to counts one, three, and six of the indictment and now faces sentencing on charges of conspiracy to commit mail fraud, one count of mail fraud, and one count of conspiracy to commit money laundering. Rogers faces a maximum of 20 years in prison on each count and will be sentenced by Senior Judge Collier on November 27, 2012.

Pamela C. Marsh, United States Attorney for the Northern District of Florida, made the announcement.

Approximately a year ago, many indictments were announced as part of Operation Stolen Dreams, a nationwide sweep targeting fraudulent mortgage loans. The investigation was the largest collective enforcement effort ever brought to bear in confronting the problem. The national emphasis was initiated by the Mortgage Fraud Working Group of the President’s Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated effort to investigate and prosecute financial crimes.

The convictions are the result of ongoing investigations being handled by special agents with the Florida Department of Law Enforcement, Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. These cases were prosecuted by Assistant United States Attorney Tiffany H. Eggers.

“These convictions are a continuation of this office’s commitment to combat mortgage fraud,” said U.S. Attorney Marsh. “These are complicated and difficult matters to investigate and prosecute, but, clearly, the evidence gathered by the investigators and presented by the prosecutor was solid and persuasive. I am deeply grateful for the dedicated and professional team of agents and attorneys whose tremendous work led to this result.”

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Closing Attorneys Admit Straw Buyer Scam

Allison Tussey —  September 10, 2012 — Leave a comment

Daniel Nathan Hoskins, 42, Orlando, Florida, and Alexander Zouzoulas, 56, Winter Park, Florida, have both pleaded guilty to conspiracy to commit bank and wire fraud. Hoskins, who is suspended from practicing law, pleaded guilty and Zouzoulas pleaded guilty on August 17, 2012. Both men face maximum penalties of five years in federal prison.

According to court documents, from March 2006 through October 2008, Hoskins and Zouzoulas were licensed to practice law in the state of Florida. Both men worked at Nate Hoskins, P.A. (NHPA), which had exclusive rights to conduct residential real estate closings for three local condominium conversion projects. Hoskins and Zouzoulas conspired with individuals involved in the development of the three condominium conversion projects, to artificially inflate the sales prices of the condominium units through the use of nominee purchasers.

Nominee purchasers, also known as straw buyers, obtained home loans on condominium units they had no intention of inhabiting. They were usually paid a sum of money for the use of their identities and credit scores. The straw buyers signed all of the documents required to purchase the condominium units, including forms falsely stating that the units would be their primary residences.

In furtherance of the scheme, numerous straw purchasers and real estate agents received cash back, or “kick-backs,” after the condominium units were sold. The illegal payments were disguised as “decorator’s allowances” or other miscellaneous charges on the closing statements. NHPA paid a 25% monthly fee to a co-conspirator involved with the development of the three condominium conversion projects for all of the closings done for units in the three developments. These payments were not disclosed on closing statements.

Both Hoskins and Zouzoulas allowed closings to occur on multiple condominium purchases, using a single straw buyer that reflected that the condominiums would be the buyer’s “primary residence,” even though Hoskins and Zouzoulas knew or should have known this was false. Both men scheduled closings on multiple condominium purchases by the same straw buyer in such a way to conceal from lenders the fact that the straw buyer had purchased multiple condominium units. The defendants also allowed payments to be made to shell companies that were established so that real estate agents could receive illegal kickbacks for participating in the scheme. Neither disclosed, to lenders, the existence of the kickbacks or the disguised payments to straw buyers and real estate agents.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. It is being prosecuted by the Assistant United States Attorney Daniel W. Eckhart.

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Man Indicted for Cash Back Mortgage Scam

Allison Tussey —  August 24, 2012 — Leave a comment

J. Patrick Brester, 40, Sarasota, Florida, is the subject of an indictment charged with one count of conspiracy to commit wire fraud affecting a financial institution and nine counts of wire fraud affecting a financial institution. If convicted, he faces a maximum penalty of 30 years in federal prison for each count and a $1 million fine.

According to the indictment, Brester conspired with others to engage in fraudulent cash back to buyer mortgage transactions. The transactions involved the 2007 purchase and sale of condominiums at Vintage Grand, a large condominium complex in Sarasota, Forida. Brester and his conspirators allegedly deceived mortgage lenders about the true nature of the transactions by inflating the purchase prices of the properties, and ultimately the amount lent by the mortgage lenders, to include fees that were falsely described as “management fees” or “marketing fees.”

The indictment further alleges that Brester and his conspirators caused interstate wire transfers of the loans proceeds from the victim mortgage lenders, into bank accounts held in the name of shell companies, including IGS, Inc. and Landwick I, LLC.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

United States Attorney Robert E. O’Neill announced the indictment.

This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorneys Matthew J. Mueller and Amanda L. Riedel.

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3 Guilty Pleas Entered in Multi-Million Dollar Mortgage Fraud Case

Allison Tussey —  August 22, 2012 — Leave a comment

Josephine Santana, 57, Miami-Dade County, Florida, a mortgage broker, Jose Rafael Martinez, 36, Miami-Dade County, and Basilio Gomez, 52, Miami-Dade County, pled guilty to charges of conspiracy to commit mail fraud in connection with a multi-million dollar mortgage fraud scheme at the luxury Jade apartment complex, in violation of Title 18, United States Code, Section 1349.

All three defendants pled guilty before U.S. District Judge Donald M. Middlebrooks on August 20, 2012. Sentencing is scheduled for October 29, 2012. At sentencing, the defendants face a possible statutory maximum sentence of up to 20 years in prison.

According to statements made in court, the defendants engaged in a multi-million dollar mortgage fraud scheme using straw buyers to purchase residential properties at The Jade apartment complex, Brickell Bay Drive, Miami, Florida. As part of the scheme, the defendants allegedly submitted mortgage loan applications and supporting documents containing false information to lending institutions. The lending institutions relied on these documents to make mortgage loans to the straw buyers to purchase the residential properties.

More specifically, the defendants prepared and submitted to the lenders, false HUD-1 statements with inflated sales prices. The defendants then created a second version of the HUD-1 statements, listing the actual sales prices, which were provided to the seller. To conceal and perpetuate the fraud, the defendants made some payments to the condominium association and made some mortgage payments to the lenders to prevent foreclosure and continue to receive rental income for the units. The defendants allegedly diverted the mortgage fraud proceeds into shell companies for their personal use.

In an indictment unsealed on June 19, 2012, four other defendants were also charged in connection with this scheme, including defendants Andres Mendez, a/k/a “Andy Mendez, Sr.,” 47, Miami-Dade County, Andy Mendez, a/k/a “Andy Mendez, Jr.,” 26, Miami-Dade County, Lilia Casal-Diaz, 42, an attorney, Coral Gables, Florida, Ayadie Carmen Londono, 59, a former real estate broker, Miami, Florida.

In addition, in a separate Criminal Information filed June 19, 2012, co-defendant Raquel (Carrie) Martinez, 49, Miami, was charged with conspiracy to commit mail fraud and money laundering, in violation of Title 18, United States Code, Section 371, for her role in creating false paperwork to lend legitimacy to the transactions, in return for kickbacks.

In a related case, defendant Jose Arnaldo Rosario, 55, Miami-Dade County, was sentenced on August 5, 2011 for his role in the scheme. Rosario was sentenced to 46 months in prison, to be followed by 3 years of supervised release. Rosario previously pled guilty to conspiracy to commit money laundering and wire fraud, in violation of Title 18, United States Code, Section 371. Rosario provided false information to the lending institution and received two kickbacks from the purchase of two apartments. Rosario received a wire transfer of approximately $275,767.84 and another $266,178.07 through bank accounts of shell companies he controlled.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), and Paula Reid, Special Agent in Charge, United States Secret Service, Miami Field Office, announced the guilty pleas.

Mr. Ferrer commended the investigative efforts of IRS-CID and the U.S. Secret Service. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.

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Woman Jailed for Stealing Escrow Funds

Allison Tussey —  August 22, 2012 — Leave a comment

Linda Irene Rovetto, 69, Lake County, Florida, was sentenced in federal court for her participation in a bank fraud conspiracy scheme. Rovetto had previously pled guilty to converting and misdirecting more than $3.5 million of real estate escrow funds, in violation of Title 18, United States Code, Sections 1344 and 1349.

At the hearing, U.S. District Judge Jose E. Martinez sentenced Rovetto to 42 months in prison, to be followed by five years of supervised release. In addition, Rovetto was ordered to pay restitution in the amount of $2,040,343.14 to the banks defrauded by her conduct.

On December 9, 2010, defendant Rovetto and three others were indicted on bank fraud, conspiracy, and related mortgage fraud charges. According to the charges, Rovetto, through her company Florida Lakes Title & Closing, LLC, along with various co-defendants, was diverting escrowed mortgaged funds from real estate closings. The defendants diverted more than $3.5 million in mortgage loans to Raviworld New Homes, Inc., a company managed by codefendant Bhaardwaj “Deo” Seecharan.

Bhaardwaj Seecharan pled guilty on April 2, 2012 to the same charges as Rovetto. Sentencing for both Seecharan and his wife and codefendant Gergawattie “Kamla” Seecharan is scheduled for September 25, 2012 before Judge Martinez.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentence.

Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office, for their work on this investigation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.

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Husband and Wife Indicted in Mortgage Fraud Scheme

admin —  August 21, 2012 — 1 Comment

Timothy McCabe, 47, and Theresa Morales, 48, Hypoluxo, Florida, have been indicted for bank fraud.

According to the indictment, the defendants submitted a fraudulent loan application to a financial institution, JPMorgan Chase Bank, to obtain a $560,000 mortgage on a property in Lewiston, New York. The defendants, who are husband and wife, provided false information in the loan application as to employment, salary, and residency. The defendants conduct resulted in foreclosure on the property.

U.S. Attorney William J. Hochul, Jr. made the announcement.

The charge carries a maximum penalty of 30 years in prison, a $1,000,000 fine, or both.

The indictment is the result of an investigation by the Mortgage Fraud Task Force of WNY which includes agents and personnel from the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast; the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Robert Bethel; the Housing and Urban Development Office of Inspector General, under the direction of Cary Rubenstein, Special Agent in Charge, New York Region; and the Internal Revenue Service, under the direction of Acting Special Agent in Charge Toni Weirauch. The Mortgage Fraud Task Force of WNY is led by the U.S. Attorney’s Office and also includes Veterans Affairs Office of Inspector General and the U.S. Bankruptcy Trustee.

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Jury Convicts 2 of Foreclosure Rescue Scheme

Allison Tussey —  August 3, 2012 — Leave a comment

Cathy Saffer, Pompano Beach, Florida, and Barrington Coombs, Weston, Florida, a certified public accountant, were convicted by the Department of Justice for their roles in a South Florida mortgage fraud scheme that took advantage of homeowners on the brink of foreclosure and left many without their homes.

The defendants were convicted by a jury in West Palm Beach, Florida, on conspiracy and fraud charges in connection with a so-called foreclosure rescue scheme, in which the defendants promised to help distressed homeowners but instead swindled them out of the remaining equity in their houses.

The jury convicted Saffer of one count of conspiracy, three counts of mail fraud and two counts of wire fraud.  Coombs was convicted of one count of conspiracy and one count of wire fraud. Lisa Wright, Pompano Beach, pleaded guilty to her participation in the same foreclosure rescue scheme in March 2012.

At trial, evidence revealed that Saffer and Wright operated a business called Foreclosure Solution Specialists (FSS) from 2006 to 2009.  Through FSS, Wright and Saffer targeted homeowners facing foreclosure, advertising that FSS could assist those homeowners in remaining in their homes. When contacted by distressed homeowners seeking assistance, Wright and Saffer misrepresented to those homeowners that their homes would be sold to investors. According to witnesses at trial, Wright and Saffer also claimed that customers could remain in their homes after the sales and promised them an opportunity to repurchase the homes at a later date. Rather than selling the homes to legitimate investors, Wright and Saffer designed sham sales to straw purchasers whom they paid to participate in the scheme.

Witnesses and documents admitted at trial further revealed that Wright and Saffer made numerous misrepresentations on loan applications regarding the straw purchasers’ net worths, incomes and employment histories in order to induce lenders to fund loans. As part of the scheme, Wright and Saffer paid Coombs to sign a letter which falsely vouched for the fraudulent information on various loan applications.

These sham sales drew equity out of the homes, which Wright and Saffer pocketed for their own purposes. After doing so, Wright and Saffer allowed the loans to go into foreclosure. Homeowners ultimately lost all of the equity in their homes, and most of the victims were forced to move out of their homes.

The case was investigated by the FBI. The case is being prosecuted by Christopher E. Parisi and John Claud, Trial Attorneys at the Civil Division’s Consumer Protection Branch.

USA Wifredo A. Ferrer, who announced the jury’s verdict, stated, “These individuals engaged in a foreclosure rescue scheme that defrauded homeowners who were having difficulty making their mortgage payments.  Instead of selling the properties as promised, the defendants sold the homes to straw buyers whom they controlled and then allowed the loans to go into foreclosure.  As a result, many victims lost their homes.   Today’s conviction reaffirms our commitment to prosecuting mortgage fraudsters.”

“Foreclosure rescue schemes victimize Americans in dire straits at risk of losing their most prized possession ““ the roof over their heads,” said Acting Assistant Attorney General Stuart Delery of the Justice Department’s Civil Division. “These convictions demonstrate that we will aggressively prosecute individuals who prey on homeowners struggling in these tough financial times.”

This investigation is part of the Department of Justice’s continued nationwide focus on mortgage fraud.

The announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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Man Charged for Attempting to Sell Homes He Did Not Own

Allison Tussey —  August 2, 2012 — Leave a comment

Gaetano Antonelli was charged in July 2012, with three cases of organized fraud (less than $20,000). Antonelli‘s scheme involved contacting individuals who were behind on their mortgage payments and deceiving them into signing the deed to their property over to him via Power of Attorney (so he could rescue them from their mortgage). Once Antonelli fraudulently obtained the deed to the property, he would run an ad on Craigslist, attempting to sell the property that did not belong to him.

Since the original charges, other victims have become aware of Antonelli‘s scheme and are filing reports with authorities. In Hernando County, Florida, three additional victims have come forward; therefore, three additional organized fraud charges have been filed against Antonelli. In Citrus County, Florida, four potential cases were identified and reported to the Citrus County Sheriff’s Office.

Due to the magnitude of this case and the number of victims (in at least three counties ““ Hernando, Pasco, and Citrus) the State Attorney’s Office Public Interest Unit in Ocala, Florida, will take over the prosecution of the case. All cases in Hernando County have been closed with an arrest.

The Hernando County Sheriff’s Office announced the charges.

If you believe you may be a victim of Gaetano Antonelli, please contact Detective Dustin Mormando at the Hernando County Sheriff’s Office ““ 352-797-3728 or by e-mail at dmormando@hernandosheriff.org

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Alleged Mortgage Assistance Company Shut Down

Allison Tussey —  July 31, 2012 — Leave a comment

At the request of the Federal Trade Commission, a U.S. district court has halted a nationwide scam operating from the Dominican Republic ““ but pretending to be in Chicago ““ that allegedly peddled fake mortgage assistance relief to financially distressed Spanish-speaking homeowners in the United States. The defendants promised to dramatically lower homeowners’ monthly mortgage payments in exchange for a hefty upfront fee, and collected more than $2 million in fees during the last three years, but failed to provide homeowners with the promised services, according to the FTC complaint.

Speaking in Spanish and targeting homeowners behind in their payments or facing foreclosure, the telemarketers would empathize about the tough economy and claim to provide information about federal mortgage assistance programs, according to the complaint. In lengthy sales calls, the telemarketers would lie to create a sense of trust, falsely claiming to be affiliated with or approved by the consumers’ lenders or the government, and “making sure to mention President Obama or the Making Home Affordable Program by name,” according to documents filed with the court.

Charging what they said was a one-time advance fee of $995 to $1,500, the callers allegedly falsely promised homeowners a mortgage modification in 30 to 90 days, often advising them to stop paying their lenders. The callers often promised that when the loan modification was finalized, the homeowners’ lenders would forgive any past-due payments and late fees, the complaint states.

Homeowners who signed up received a batch of forms in the mail that required them to provide extensive personal and financial information and pay an advance fee, according to the complaint. After paying the fee and not hearing further from the defendants for weeks afterward, some homeowners who managed to reach a live representative were told that the modification process was underway, but they needed to pay up to several thousand dollars in additional fees. In the end, the FTC alleged, few homeowners got any loan modification ““ or anything else of value from the defendants. And what they did receive, they could have gotten for themselves for free.

The court order stops the illegal conduct and freezes the operation’s assets while the FTC moves forward with the case.

As part of its continuing crackdown on scams targeting consumers in financial distress, the FTC charged Minnesota resident David F. Preiner, who allegedly owns and directs six companies named as corporate defendants in the scam:

Freedom Companies Marketing, Inc., Freedom Companies Lending, Inc., and Freedom Companies, Inc., all based in Centerville, Minnesota and using a Chicago address.

Grupo Marketing Dominicana, based in Santo Domingo, Dominican Republic.

Freedom Information Services, Inc., based in Miami, Florida, and

Haiti Management, Inc., based in Vero Beach, Florida.

The complaint charges the defendants with violating the FTC Act and the Mortgage Assistance Relief Services Rule, known as the MARS Rule, by:

Falsely representing that they could get a mortgage modification that would make consumers’ mortgages significantly more affordable.

Falsely representing that they were affiliated with the U.S. government.

Misrepresenting the likelihood that they could get a mortgage modification for clients; that they could do it quickly at a specified price; and that they were affiliated with the U.S. government, a governmental homeowners’ assistance plan, or consumers’ banks.

Failing to disclose to homeowners that if they discontinued paying their mortgages, they could lose their homes and damage their credit ratings.

Not disclosing that a consumer can choose whether to accept an offer of mortgage assistance that the defendants obtain from the consumer’s lender.

Requesting and receiving advance payments from homeowners without a written modification agreement between the consumers and their lenders.

The FTC would like to thank Pro Consumidor: Instituto Nacional de Protección de los Derechos del Consumidor of the Dominican Republic; the Idaho Department of Finance, Consumer Finance Bureau; the Utah Department of Commerce, Division of Real Estate; and the Better Business Bureau of Chicago and Northern Illinois for their assistance in this case.

The Commission has advice for consumers about managing their mortgages. For more information see: Your Home and Mortgage Payments in English, and Su Casa and Pagos de Hipoteca in Spanish.

The Commission vote authorizing the staff to file the complaint was 5-0. The FTC filed the complaint and request for a temporary restraining order in the U.S. District Court for the Northern District of Illinois, Eastern Division on July 23, 2012, and the court granted the FTC’s request the same day.

NOTE: The Commission files a complaint when it has reason to believe that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

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3 Go to Jail for Arson, Insurance and Mortgage Fraud

Allison Tussey —  July 30, 2012 — Leave a comment

Gerardo Wilhelm, Miami, Florida, Juan J. Flores, Ocala, Florida, and Alejandro Figueredo, Miami, for their participation in a townhouse arson, mortgage fraud and insurance fraud scheme that resulted in losses of more than $500,000. On July 24, 2012, U.S. District Judge Kathleen M. Williams sentenced Figueredo to 40 months in prison and Wilhelm to 54 months in prison. Flores was sentenced on July 19, 2012 by Judge Williams to 60 months in prison.

According to the indictment and statements made in court during the guilty pleas, Wilhelm, a real estate agent, Flores, a mortgage broker, and Figueredo, an insurance adjuster, engaged in a string of federal crimes involving a townhouse in Miami-Dade County, Florida. In early 2006, Wilhelm obtained mortgage loans to purchase the property by misrepresenting his and his wife’s employment and by falsely stating that they intended to use of the property as their primary residence.

Wilhelm then rented the townhouse until it no longer generated income. In late 2007, after foreclosure proceedings were initiated against him, Wilhelm hired Flores and Figueredo to burn down the house. Figueredo received second and third-degree burns to approximately a third of his body from the explosion. After the fire, defendant Wilhelm submitted a fraudulent insurance claim for the damage, and received approximately $180,000 in insurance proceeds, made payable to the lender. However, Wilhelm forged the endorsement on the insurance check and kept the money.

After misappropriating the insurance money, Wilhelm obtained a loan modification, in the form of a short sale, from the defrauded lender that held the mortgage loans on the townhouse. In carrying out this short sale, Wilhelm hired a straw buyer to purchase the property. After the sale was completed, the straw buyer transferred the townhouse title to Wilhelm. Thereafter, Wilhelm and his accomplices sold the townhouse for $240,000, resulting in a $500,000 loss to the financial institutions.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and James K. Loftus, Director, Miami-Dade Police Department (MDPD), announced the sentencings.

U.S. Attorney Ferrer commended the hard work of the Federal State Mortgage Fraud Strike Force, with special commendation to ATF and Miami-Dade Police Department. The case was prosecuted by Assistant U.S. Attorney Roger Cruz.

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