Underwriter Sentenced in $24M Mortgage Fraud Case

Allison Tussey —  June 24, 2014 — 1 Comment

Michelle Vinas, 55, Florida, who was convicted of financial institution fraud affecting M&T Bank, was sentenced to 18 months in prison and ordered to pay restitution totaling $423,434.98 by U.S. District Court Judge Richard J. Arcara.

As previously reported by Mortgage Fraud Blog, Vinas was an employee of the Federal Guaranty Mortgage Company based in Florida, and was responsible for the underwriting of loans which included complete review of loan applications, including supporting documentation and verification of information placed on loan applications. Once the underwriting was completed by the defendant, the loan files were submitted to financial institutions for funding.

In just one instance which exemplified the fraud, the defendant was provided information to include on a loan application for 1081 SW 156th Avenue, Pembroke Pines, Florida. The information stated that an individual had a monthly income of $21,000 and had in excess of $800,000 on deposit at a financial institution but Vinas knew that information was false. The defendant nevertheless approved the loan application as the underwriter which allowed the loan to be funded.

As a result of the defendant’s actions, M&T Bank was one of nine financial institutions to suffer a loss and specifically suffered a loss of $4,407,515.48. The parties estimated that the total fraud scheme amounted to approximately $24,000,000.

Frank Garcia, the owner of Federal Guaranty Mortgage Company, has also been convicted in this case and is awaiting sentencing.

U.S. Attorney William J. Hochul, Jr. announced the sentence.

Assistant U.S. Attorney Trini E. Ross handled the case.

The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.

Allison Tussey

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One response to Underwriter Sentenced in $24M Mortgage Fraud Case

  1. Kudos, FBI!! Keep it up.

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