Feds indict 31 in mortgage-loan scheme (Florida)
sun-sentinel.com
By Vanessa Blum
Sun-Sentinel.com
4:27 PM EST, December 17, 2007
Federal officials announced charges Monday afternoon against 31 people accused of participating in a scheme to obtain fraudulent mortgage loans worth roughly $14 million.
The group's leaders obtained inflated loans for the purchase of at least 28 properties and then pocketed the difference between the loan and the actual purchase price, prosecutors said. According to the indictment, several of the properties are in Broward County.
Prosecutors said the conspiracy involved people working in all aspects of the real estate business, including a bank employee, a title agent, and an appraiser.
The purported leaders, husband Juan Torrens, 40, and wife Rachael Torrens, 33, both of Miami-Dade, recruited individuals willing to pose as home buyers and prepared false mortgage loan applications in their names, the indictment states. The applications allegedly included false employment verification, pay stubs and IRS forms.
In order to validate the inflated sales price, another individual would prepare fraudulent appraisals attesting to the inflated property value, the indictment states.
Prosecutors said the appraiser and others involved in the scam received bribes for their assistance.
Of the 28 properties listed in the indictment, nine are in Broward County.
Monday's indictment is part of a South Florida mortgage fraud initiative combining federal and state resources. Since September, federal prosecutors have charged 55 defendants with taking part in mortgage fraud schemes worth more than $75 million.
U.S. Attorney Alex Acosta said financial institutions are not the only victims in such cases, which make it harder for honest homebuyers to get approved for loans and contribute to higher interest rates.
"Mortgage fraud is not a paper crime," he said. "Real individuals are being hurt." |
