Virginia Feds Bust Five In Alleged Scam Using Stolen IDs In "Cash Back" Mortgage Fraud Racket

From the Office of the U.S. Attorney (Eastern District of Virginia):

• Five individuals(1) are accused of a mortgage scam fraudulently purchasing homes in Northern Virginia and profiting by using the mortgage proceeds to pay “home improvement” expenses and other payments totaling nearly $337,000.

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• According to the indictment and other court documents, [Nelson C.] Cardoza provided names of two different people to purchase five different properties in the Northern Virginia region. These buyers did not know of or authorize the purchases but the conspirators used their names and Social Security numbers to apply for and obtain the mortgage financing.

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• The conspirators profited by using part of the mortgage proceeds to pay “home improvement” expenses to themselves, entities they controlled and their associates. These home improvement expenses were approximately $33,000 to $55,000 per house. Some of the conspirators also earned thousands of dollars in commissions on the sales. According to the indictment, the conspiracy resulted in a total of at least $336,957 in fraudulent proceeds. The properties involved in the scheme have been foreclosed upon, causing substantial losses to the lenders.

For the entire press release, see Five Indicted and Arrested in Mortgage Fraud Scam.

(1) On April 15, 2009, a federal grand jury indicted Nelson C. Cardoza, age 37 of Ranson, W.V.; Victor A. Valdez, age 27 of Fairfax, Va.; Monica J. Lambert, age 30 of Gainesville, Va.; Liguia Abaunza Miranda, age 54 of Chantilly, Va.; and Erick G. Chavarria, age 35 of Manassas, Va., on conspiracy and wire fraud charges.