Press Release
LEADER IN MORTGAGE FRAUD SCHEME PLEADS GUILTY
March 3, 2008
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, Michael E. Yasofsky, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, and Broward County Sheriff Al Lamberti, announced the guilty plea of defendant Lazaro Villalba to one count of conspiracy to commit bank fraud, wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349. Villalba faces a statutory maximum sentence of twenty (20) years in prison and a fine of up to $250,000. Sentencing is scheduled for May 16, 2008, before the Honorable William J. Zloch, United States District Court Judge for the Southern District of Florida.
Villalba is one of fifteen defendants previously charged in a wide-ranging mortgage fraud scheme (United States v. Henry Quintero-Lopez et. al. Case No 07-60207-CR-ZLOCH). According to the Indictment, Lazaro Villalba and other co-conspirators orchestrated a scheme through which they located properties for sale in the Southwest Ranches area of Broward County, then fraudulently purchased the properties through straw buyers and received cash back at the closings.
Defendant Villalba would offer the owner’s full asking price and then inflate the contract purchase price to allow New World International and D& H Investments of South Florida, in both of which he had an ownership interest, to receive a finder’s fee, assignment fee and/or additional funds to allegedly construct improvements to the properties, thus creating “instant equity.” Villalba and a co-defendant would then recruit individuals, who for a fee acted as straw buyers of the properties. Villalba and a co-defendant would obtain fraudulent pay stubs, IRS Form W-2s, verification of employment and verification of deposit forms. These documents would be submitted to cooperating mortgage brokers and the loans were approved to purchase the properties.
Mr. Acosta commended the investigative efforts of the Internal Revenue Service, and Broward County Sheriff’’s Office. The case is being prosecuted by Assistant United States Attorney Thomas Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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