Florida Feds Obtain Indictment In Alleged Mortgage Scam Involving 79 Homes, $24M In Fraudulently Obtained Loans, $5M In Lender Losses

The U.S. Attorney for the Southern District of Florida (and others) announced yesterday that:

• Magile Cruz, a/k/a “Maggie Cruz,” a/k/a “Magile Cruz-Rodriguez,”a/k/a “Magile Araujo,” a/k/a “Ros Rodriguez,” was charged in a multi-million fraud scheme that resulted in more than $24,000,000 in fraudulent mortgage loans, and losses of more than $5,000,000 to lenders. Cruz was charged with conspiracy to commit mail fraud and wire fraud, [...] and with substantive counts of mail and wire fraud, [...].

According to the U.S. Attorney press release:

• Between 2005 through 2007, Cruz was engaged in a scheme to obtain fraudulent mortgage loans for the purchase of 79 properties in Miami-Dade and Broward Counties. To execute the scheme, Cruz would identify residential properties for sale through [two of her companies]. Cruz and other co-conspirators would recruit and pay straw buyers for the selected properties. Cruz and her co-conspirators would then prepare and cause to be prepared fraudulent mortgage loan applications on behalf of the straw buyers. The applications included false employment verifications, pay stubs, verification of income and funds on deposit, and IRS Forms W-2.

For the rest of the story (ie. alleged identity theft, bogus / double HUD-1s, "cash back" transactions, multiple mortgages on the same property), see De Facto Owner Of Mortgage Companies And Title Agencies Charged In Multi-Million Mortgage Fraud Scheme.