Miami Feds Bust Mortgage Fraud/Marijuana Grow House Operation; 10 Of 18 Homes Financed With Fraudulently Obtained Loans Used As Indoor Pot Farms

In Miami, Florida, the U. S. Attorney's Office (Fla. Southern District) announced last week the indictment of nine Miami residents(1) allegedly involved in a mortgage fraud scheme used to finance the purchase of a number of homes used in a marijuana grow house operation. An excerpt from the press release:

• [A]s set forth in the Indictment, from on or about March 2, 2004, and continuing through about May 1, 2008, [eight of the defendants] were the buyers and sellers of real estate in St. Lucie County, Miami-Dade County, Lee County, Columbia County, and Marion County, Florida. At least ten of the houses were purchased through fraudulent mortgage applications, and after purchase, were used and maintained as marijuana grow houses. The defendants made false representations of material facts in mortgage applications, thereby causing mortgage companies to issue mortgages for the purchase of 18 houses.

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• The Indictment further alleges, on a number of the fraudulent transactions, the loan officer was defendant Magalys Fajardo, a/k/a Magalys Rodriguez, who was employed by mortgage brokers, LendAmerica Home Loans, Bluetrust Capital, and Monster Mortgage, Inc.(2) [...] The aggregate dollar amount of all loans procured fraudulently by the defendants from the mortgage lenders exceeded six million dollars.

For the U.S. Attorney press release, see Miami Residents Indicted In Marijuana Grow House, Mortgage, And Money Laundering Scheme.

Go here and go here for other posts on Marijuana Grow Houses.

(1) The indicted defendants are: Manuel Pupo, a/k/a Tata, Elieser Pupo, Serguey Pupo, Elmer Pupo, a/k/a Elmes, Maritza Perez, Noel Albanes-Gomez, Omar Cardenas, Zenaida Rodriguez and Magalys Fajardo, a/k/a Magalys Rodriguez.

(2) Reportedly, as part of the mortgage lending process, the defendants, via Magalys Fajardo, a/k/a Magalys Rodriguez, allegedly submitted fraudulent Uniform Residential Loan Applications, Requests for Verification of Employment, Requests for Verification of Deposit, IRS Forms W-2, payroll stubs, bank statements, as required by the mortgage lenders, through the mortgage broker to the lender for review and credit worthiness approval. pot grow ops beta