Archives For Mortgage Fraud

Man Pleads Guilty to Fraud Scheme Involving Mortgage Fraud

Stephanie Abbott —  October 3, 2024 — Leave a comment

Nicholas Espinosa, 38, Randolph, Massachusetts, pleaded guilty today to two counts of wire fraud conspiracy; one count of conspiracy to make false statements to a mortgage lending business (mortgage fraud conspiracy); 16 counts of wire fraud; six counts of unlawful monetary transactions (money laundering); and one count of making false statements to a mortgage lending business.

Espinosa was arrested and charged in March 2023 along with alleged co-conspirator Daniel Cleggett.

According to the charging documents, Cleggett was the founder of the sober home business, A Vision From God LLC (AVFG), with locations in in Boston, Wakefield, Quincy and Weymouth under trade names including Brady’s Place, Lakeshore Retreat and Lambert House. Espinosa managed the day-to-day affairs of Cleggett’s business.

Espinosa, and allegedly Cleggett, along with a sober home client entered into a conspiracy to defraud a New York-based family trust that was paying for the client’s room and board at Brady’s Place in Quincy. Specifically, Espinosa, and allegedly Cleggett, overcharged the family trust for room and board by up to $12,500 per month by submitting false and fraudulent invoices to the family trust. Espinosa, and allegedly Cleggett, would then issue “refund” checks to the client in furtherance of the fraud scheme.

According to the charging documents, from approximately October 2019 to December 2021, Cleggett personally, and through straw purchasers including Espinosa, purchased the three residential properties in Weymouth and Boston to use as sober homes. Espinosa falsely represented that one of these properties was intended to be purchased as a primary residence for himself when, in reality, it was intended to be a sober home.

In addition to the sober home business, Cleggett operated numerous insulation contracting companies that participated in the Mass Save Program: Green Save Energy Corporation; Environmental Construction Objective Inc. (ECO); Green Giants, LLC; and Insulation Situation, LLC. Mass Save is a Massachusetts public/private partnership sponsored by gas and electric utility companies that funds energy conservation projects and improvements via energy efficiency funds charged to Massachusetts residents’ utility bills.

Specifically, Green Save and ECO received millions of dollars for residential insulation work from a lead vendor company under the Mass Save program. It is alleged that, from 2018 through mid-2021, Green Save and ECO fraudulently billed the vendor company for required permits that were not actually obtained. Green Save and ECO were ultimately terminated from participating in the company’s program in June 2021, and Cleggett was banned from participating in the Mass Save program. In response to this, Espinosa, and allegedly Cleggett and others, formed Green Giants as a new lead vendor with the same company under a straw owner. As a result, Espinosa, and allegedly Cleggett, obtained a total of $509,326 in payments from the company to Green Giants, despite a ban from participating in the Mass Save program.

The charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements to a mortgage lending business provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

U.S. Senior District Court Judge William G. Young scheduled sentencing for March 11, 2025. Espinosa was arrested and charged in March 2023 along with alleged co-conspirator Daniel Cleggett

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Valuable assistance was provided by the Kingston, Randolph and Quincy Police Departments. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

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Scheme to Defraud Distressed Homeowners Gets Man Sentenced

Stephanie Abbott —  October 3, 2024 — Leave a comment

Terrylle Blackstone, 37, Woodbridge, Virginia, was sentenced today for participating in a conspiracy that fraudulently promised thousands of homeowners across the U.S. legal help in avoiding foreclosure. The scheme generated at least $15 million for the conspirators but never provided any legal services to the client-victims.

According to court documents, from January 2018 until February 2021, Blackstone worked with attorneys David Maresca of Virginia, Scott Marinelli of New Jersey, and Sam Babbs of Florida. The co-conspirators told homeowners that they operated a “national law firm” based in Washington, D.C.; that attorneys would review the homeowner’s file and provide legal representation to the homeowners; that an attorney in the homeowner’s local area would be assigned to assist them; that the homeowner could meet and consult with those attorneys about the case; and that attorneys in their law firm could help the homeowner, if necessary, file for bankruptcy.

From 2016 until 2019, the conspirators marketed Synergy Law with telephone, television, and internet advertising which told homeowners that attorneys at Maresca and Marinelli’s Synergy Law (Synergy) in Manassas could help them avoid foreclosure. During 2018 and 2019, bankruptcy judges, Synergy clients, and the U.S. Trustee’s Program raised concerns about Synergy’s practices in bankruptcy matters. Blackstone attended court hearings on behalf of Synergy where he made false statements to the court about the firm’s operations. In early 2019, Marinelli was incarcerated in Pennsylvania. Yet Blackstone, Maresca, Marinelli, and others continued to operate Synergy and collect monthly payments purportedly for legal services. During this time, there was no attorney who was a member of Synergy who could practice law. Synergy never had attorneys review all homeowner files and Synergy never had attorneys contact a client’s lender to discuss a mortgage resolution. They also continued to use the interstate wires to operate their “law firm” in ways that were essential to the scheme, such as soliciting clients by telephone.

From 2019 until at least 2022, the conspirators marketed another firm, Themis Law, with television and website advertising which told homeowners that attorneys with Themis could help them avoid foreclosure. Themis operated a call center at an office in Manassas, Virginia. Call center workers used scripts during their phone calls with homeowners in which Themis falsely promised that an attorney would review the homeowner’s case file; that this attorney knew their lender’s “internal guidelines” for a “mortgage resolution”; and that an assigned “legal team” would contact the homeowner’s lender to negotiate a resolution. Themis required homeowner-clients to pay an initial retainer amount followed by a monthly recurring amount for as long as the firm represented the homeowner. When Themis clients faced imminent foreclosure, Themis advised those clients to consider filing for bankruptcy to save their home and referred the clients to Babbs at the Babbs Law Firm. Those clients then signed a new retainer agreement and paid additional fees to Babbs.

During his dates of employment at Synergy Law and Themis Law, Blackstone received no less than $159,145.35 in direct payments from the companies. Judge Moss ordered that Blackstone pay a forfeiture money judgment in that amount.

The sentence was announced U.S. Attorney Matthew M. Graves, Special Agent in Charge David Geist of the FBI Washington Field Office Criminal and Cyber Division, and Special Agent in Charge Kareem Carter of the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C. Field Office.

Blackstone pleaded guilty on June 6, 2024, to a count of conspiracy to commit mail fraud and wire fraud before U.S District Court Judge Randolph D. Moss. In addition to the prison term, Judge Moss ordered Blackstone to serve three years of supervised release and pay $159,145.35 in restitution.

This case was investigated by the FBI Washington Field Office and the Washington, D.C. Field Office of IRS-CI.

It is being prosecuted by Assistant United States Attorney John Borchert.

 

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Loan Originator Convicted in Mortgage Fraud Scheme

Stephanie Abbott —  September 20, 2024 — Leave a comment

Kevin Smith, 52, of Melrose Park, Illinois, a loan originator was found guilty on September. 6, 2024, of orchestrating a mortgage fraud scheme that bilked multiple financial institutions out of $2.6 million.

Smith was a loan originator for mortgage lending businesses that originated and processed loans for real estate purchases in the Chicago area.  Evidence at the two-week trial revealed that Smith engaged in a scheme to fraudulently obtain approximately $2.6 million in federally guaranteed mortgage loans in connection with the purchase of 14 properties in Chicago.  Smith recruited buyers at real estate investment seminars held in Chicago-area churches and hotels and caused them to make false representations to lenders about, among other things, the source of their down payments and their intention to occupy the properties as their primary residences.  Smith provided or caused others to provide funds to the buyers for use as down payments, knowing that the lenders would be falsely led to believe that the money belonged to the buyers.  After a closing and the issuance of the government-insured mortgage loans, Smith made payments to the buyers – describing them as “grants” – and then pocketed payments from the sellers without notifying the lenders.

Each count is punishable by up to 30 years in federal prison.  U.S. District Judge John F. Kness set sentencing for Dec. 17, 2024.

The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office.  The government is represented by Assistant U.S. Attorneys Rick D. Young and Misty N. Wright.

“Loan originators and other mortgage professionals are entrusted with protecting the integrity of the government-backed mortgage program,” said Acting U.S. Attorney Pasqual. “Our office will continue to hold accountable any individual who violates that trust to line their own pockets.”

“Smith abused his position of trust as a gatekeeper of FHA-insured mortgage loans and used his real estate knowledge to circumvent the rules to secure his own self-interest,” said HUD-OIG SAC Jindra.  “HUD-OIG will continue to work with its prosecutorial and law enforcement partners to aggressively pursue and bring to justice those who seek to profit by abusing HUD’s mortgage insurance and housing programs.”

“This guilty verdict demonstrates the VA Office of Inspector General’s commitment to protecting vulnerable veterans from fraudulent lending practices,” said VA-OIG SAC Billingsley.  “The VA-OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”

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Restaurant Owner Sentenced For Role in Submitting Fraudulent Loan Applications

Stephanie Abbott —  August 29, 2024 — Leave a comment

Omar Hernandez-Lopez, 39, Springfield, Illinois as sentenced today to 18 months’ imprisonment for concealment of a felony in connection with wire fraud and false statements on loan applications.

At Hernandez-Lopez’s sentencing hearing, Senior U.S. District Judge Sue E. Myerscough, found that starting around June 2018 and continuing until at least June 2019, Hernandez-Lopez was aware of and acted to conceal the fraudulent nature of several falsified documents that were submitted to loan providers. Two fraudulent loan packages were submitted in an unsuccessful attempt to obtain a business loan for Hernandez-Lopez’s Springfield restaurant, La Fiesta Grande. The other two fraudulent loan packages were submitted in a successful attempt to obtain a home mortgage loan. Hernandez-Lopez was aware of the submission of fraudulent documents and took steps to conceal their fraudulent nature from the loan companies and law enforcement.

At the sentencing hearing, the government presented evidence showing that Hernandez-Lopez’s name is on the deed of the house for the fraudulently obtained mortgage and he operated the restaurant.

The sentencing follows Hernandez-Lopez’s guilty plea in April 2024. The statutory penalties for misprision of a felony are up to three years’ imprisonment, one year of supervised release, and a fine of up to $250,000.

Following his prison sentence, he will serve a 12-month term of supervised release.

The charges were investigated by the Federal Deposit Insurance Corporation Office of Inspector General, Chicago Region. Assistant U.S. Attorneys Sierra Senor-Moore and Tanner Jacobs represented the government in the prosecution.

 

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Man Arrested For Defrauding Federal Criminal Forfeiture

Stephanie Abbott —  August 21, 2024 — Leave a comment

Levelle Joseph Harris, 38, Kissimmee, Florida, was arrested on an indictment charging him with four counts of wire fraud.

According to court documents, between February 7, 2022, and January 31, 2023, Harris devised a scheme to defraud by obtaining a mortgage through false representations. Harris then used the proceeds from the fraudulently obtained mortgage to purchase a residence that was subject to federal criminal forfeiture. Harris fraudulently obtained more than $650,000 as part of the scheme.

If convicted, Harris faces up to 20 years in federal prison on each count. Harris is also facing a forfeiture order of $651,432, a sum which represents the total amount of proceeds obtained by Harris from the wire fraud scheme. A federal grand jury had indicted Harris on August 6, 2024.

United States Attorney Roger B. Handberg made the announcement.

An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.

This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk. Assistant United States Attorney Jennifer Harrington is handling the forfeiture.

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Man Sentenced to Prison for FHA Fraud Scheme

Stephanie Abbott —  July 29, 2024 — Leave a comment

Jason Trador, 46, Scott Depot, West Virginia was sentenced today for fraudulently obtaining a $223,870 FHA-Insured Home Mortgage by making a false statement to federal agents, willfully overvaluing property on a loan application, and making a false statement to the United States Department of Housing and Urban Development (HUD).

A federal jury convicted Trador of the five felony offenses on April 10, 2024, after a two-day trial. Evidence at trial proved that Trador fraudulently obtained a $223,870 home mortgage insured by the Federal Housing Administration (FHA) from his then-employer, Victorian Finance LLC, a mortgage lending business. At the time he applied for the FHA loan in August 2018, Trador was delinquent on paying his federal taxes for a prior tax year. Because of the tax debt, Trador was not eligible for an FHA loan under existing FHA program rules. Trador deceived Victorian Finance into approving the application and the FHA into insuring the mortgage by providing a series of falsified documents including a falsified Internal Revenue Service (IRS) tax transcript purporting to show a payoff of the delinquent $8,151 tax debt.

Trador also submitted three heavily edited bank statements to Victorian Finance. Each falsified bank statement substantially inflated the balances in Trador’s bank accounts. Two of the falsified statements reported balances of approximately $27,000 and $15,000 for Trador’s personal bank account when in fact the account had negative balances. Line items, such as for insufficient funds fees, were removed from the falsified bank statements and a line item was added to deceive Victorian Finance into believing that he had paid off the delinquent $8,151 tax debt. Evidence at trial proved the purported payoff never occurred and that Trador was still delinquent on the federal tax debt as of March 2024.

On September 4, 2018, Trador willfully overvalued his assets on a loan application when he signed a Uniform Residential Loan Application that included the false balances from the falsified bank statements.

On May 6, 2022, Trador lied to investigators with HUD’s Office of Inspector General (OIG) and the Federal Bureau of Investigation (FBI) when they interviewed Trador at his Scott Depot residence about his application for the FHA-insured mortgage. Trador denied submitting false bank statements with his loan application, and blamed his fellow employees of the mortgage lending business for the inclusion of the false bank statements in the FHA loan file.

Trador was sentenced to one year and six months in prison, to be followed by three years of supervised release, and ordered to pay $65,302.16 in restitution

“Jason Trador was a loan officer with a duty to keep fraud out of the mortgage lending industry when he betrayed that position of trust and tricked his then-employer with his sophisticated criminal scheme,” said United States Attorney Will Thompson. “Since the fraud was discovered, Mr. Trador has chosen to attempt to deceive rather than own his mistakes. He lied to federal investigators. He took the stand and made over 30 false statements during his trial. He has shown no acceptance of responsibility or remorse for any of his crimes.”

Thompson made the announcement and commended the investigative work of the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) and the Federal Bureau of Investigation (FBI).

“Jason Trador took advantage of his knowledge of the mortgage industry to circumvent the rules and abused the position of trust he held as a loan officer and gatekeeper of FHA-insured loans.  He created and passed false documents allowing him to qualify for a loan he knew he would not otherwise qualify for,” said Special Agent-in-Charge Shawn Rice with the U.S. Department of Housing and Urban Development, Office of Inspector General.  “The sentence handed down today serves as a warning that significant penalties await those willing to commit fraud involving HUD-funded programs. HUD OIG remains committed to working with our prosecutorial and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”

“Fraud activity of any kind has far-reaching consequences, and showing no remorse underscores the seriousness of this crime. The FBI will not stand for individuals who abuse their position for personal gain at the expense of others,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “The FBI remains resolute in safeguarding our financial landscape, providing a level playing field for honest consumers, and ensuring the public maintains trust in the integrity of our institutions.”

United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Andrew J. Tessman, Jonathan T. Storage and Erik S. Goes prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-117.

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Woman Charged With Conspiracy To Commit Mortgage Fraud

Stephanie Abbott —  July 10, 2024 — Leave a comment

Angel Jackson, 44, Astatul, Florida, has been charged with one count of conspiracy to commit bank fraud.

According to the indictment, Jackson and others conspired to create and execute a mortgage fraud scheme targeting financial institutions. To ensure that otherwise unqualified borrowers obtained mortgage loans from financial institutions, Jackson created fictitious and fraudulent paystubs that falsely indicated that the borrowers worked at particular companies for certain periods of time and earned income that they did not. Further, Jackson altered legitimate Social Security benefit letters to reflect exaggerated monthly disability income, and she altered bank statements to show falsely inflated account balances. Based on Jackson’s and her co-conspirators’ misrepresentations, the financial institutions approved and funded the mortgage loans.

If convicted, Jackson faces a maximum penalty of 30 years in federal prison.

United States Attorney Roger B. Handberg announced the return of an indictment charging Jackson.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. It will be prosecuted by Special Assistant United States Attorney Chris Poor.

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Real Estate Investor Pleads Guilty to $54.7M Mortgage Fraud Conspiracy

Stephanie Abbott —  June 17, 2024 — Leave a comment

Aron Puretz, 53, New Jersey, pleaded guilty today to engaging in an extensive, multi-year conspiracy to fraudulently obtain over $54.7 million in loans and to fraudulently acquire multifamily and commercial properties.

According to court documents, between 2016 and 2022, Puretz conspired with others to deceive lenders into issuing multifamily and commercial mortgage loans. Puretz and his conspirators provided the lenders with fictitious documents, including purchase contracts with inflated purchase prices, fake financial statements, and other fraudulent documents. Puretz was an employee of Apex Equity Group, a real estate investment and advisory firm, and one of the owners of Maple Lawn in Eureka, Illinois, and Big Country Chateau in Little Rock, Arkansas, both multifamily properties, and Troy Technology Park in Troy, Michigan, a commercial property.

In February 2017, Maple Lawn was acquired for $4.1 million. However, Puretz and his conspirators from Apex Equity Group utilized the identity of a conspirator to present a lender and Freddie Mac with a purchase and sale contract for $5.8 million and other fraudulent documents. On Feb. 17, 2017, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $4.1 million sales price and another for the fraudulent $5.8 million sales price presented to the lender. Part of the conspiracy was to create a nonprofit entity, JPC Charities, for the purpose of receiving tax-exempt status for the properties owned by Puretz and co-conspirators. Puretz and his conspirators provided false statements to the city of Eureka, Illinois, to receive a property tax exception.

In July 2019, Puretz and his conspirators acquired Big Country Chateau. However, Puretz knew the lender and Freddie Mac would not approve him as an owner, and used the identity of an associate instead of his own. Puretz hid his ownership and involvement with the property management company from the Department of Housing and Urban Development and other federal and state agencies.

In September 2020, Troy Technology Park was acquired for $42.7 million. However, Puretz and his co-conspirators presented the lender with a fraudulent purchase and sale contract for $70 million. To support the inflated purchase price, Puretz and his conspirators submitted to the lender and appraiser a fraudulent letter of intent to purchase the property from another party for $68 million and other fraudulent documents. To conceal the fraudulent nature of the transaction, Puretz and his conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the loan. On Sept. 25, 2020, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $42.7 million sales price and another for the fraudulent $70 million sales price presented to the lender.

Puretz pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution. He is scheduled to be sentenced on Oct. 30, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Philip R. Sellinger for the District of New Jersey; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Inspector General Brian M. Tomney of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.

FHFA-OIG and USPIS are investigating the case.

Assistant U.S. Attorney Martha Nye for the District of New Jersey and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.

 

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Former Baltimore City State’s Attorney Marilyn J. Mosby Convicted

Stephanie Abbott —  May 23, 2024 — Leave a comment

Marilyn J. Mosby, 44, Baltimore, Maryland was sentenced today to twelve months of home confinement as part of thirty-six months of supervised release, for making a false mortgage application and two counts of perjury.

During the first twelve months of her supervised release Mosby was ordered to remain on home confinement, with electronic monitoring and forfeiture of 90% of the property purchased with the fraudulently obtained mortgage, including any appreciation.

On February 6, 2024, Mosby was convicted on the federal charge of making a false mortgage application when she was Baltimore City State’s Attorney, relating to the purchase of a condominium in Long Boat Key, Florida. Previously, on November 9, 2023, Mosby was convicted on two counts of perjury, relating to the withdrawal of funds from the City of Baltimore’s Deferred Compensation Plan claiming that she suffered adverse financial consequences during the COVID-19 pandemic while she was the Baltimore City State’s Attorney. 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office.

U.S. Attorney Erek L. Barron commended the FBI and IRS-CI agents for their work in the investigation and thanked the Baltimore City Office of the Inspector General for its assistance and invaluable public service. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, who prosecuted the federal cases.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Third Mortgage Professional Pleads Guilty to Mortgage Fraud Scheme

Stephanie Abbott —  May 20, 2024 — Leave a comment

German Antonio Lopez-Velasquez, 55, Modesto, California, pleaded guilty today to conspiring to commit bank fraud.

According to court documents, German Antonio Lopez-Velasquez, a real estate agent, worked with Lisa Santos, 48, Long Beach, California, a mortgage loan officer, and Marko Antonio Lopez, 27, Modesto, California, a real estate agent and notary public, to obtain fraudulent mortgage loans for properties based in Stanislaus, San Joaquin, and Santa Clara Counties in California, and elsewhere. The three defendants used false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans.

Santos pleaded guilty on May 13, 2024, to conspiring to commit bank fraud, and is scheduled to be sentenced on Sept. 30, 2024. Marko Antonio Lopez previously pleaded guilty and was sentenced on April 1, 2024.

Lopez-Velasquez is scheduled to be sentenced on Sept. 9, 2024, by U.S. District Judge Jennifer L. Thurston. Lopez-Velasquez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

U.S. Attorney Phillip A. Talbert made the announcement.

“The integrity of the FHA loan program is essential to helping hard working citizens realize the American dream of homeownership,” said Special Agent-in-Charge Mark Kaminsky with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to jeopardize this program and the health and stability of our nation’s housing market.”

This case is the product of an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG) and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.

 

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