Special offer

Mortgage Broker Recruits Family Members For Loan Fraud Scheme

By
Services for Real Estate Pros with LoanSafe.org

A suspect in a multi-million dollar mortgage fraud scheme over a year ago was able to avoid prosecution despite several arrests of others involved in the scam. However, this year she has not been so lucky. Previous investigations found that Yvette Gonzalez Valdes, owner of Best Choice Mortgage, played a key role in a massive home loan scam led by Orson Benn, former VP of Argent Mortgage Co. During the housing boom, Valdez helped approve over $22 million in fraudulent loans over a 16-month period. On April 29, 2010, a federal grand jury returned a three count indictment charging Yvette Gonzalez Valdes, her daughter, Jeannine Valdes-Perez, her brother Joseph Gonzalez, her son-in-law Victor Perez, and Catherine Maiz. These individuals are being charged with mortgage fraud in connection with the purchase of two Florida homes in which falsified information allowed them to obtain $500,000 in mortgage loans.

According to the indictment, both of the properties listed Perez as the borrower, and Valdez was the broker for each of these fraudulent transactions. To make it seem Perez was a well qualified buyer they used false employment information, assets, intent to live in the home, and other fraudulent documents crucial to the loans approval. Catherine Maiz, part owner of Absolute Title LLC, used her firm as the title company for each deal and also submitted inaccurate information to lenders. For one of the homes involved in the scheme Maiz submitted a letter to the lender stating that Perez made a $17,000 deposit that is being held in escrow.

On the other home, Maiz along with several others prepared an HUD-1 settlement statement that listed inaccurate information and also claimed Perez had $26,000 to close the loan. Once these mortgages were funded, neither Perez nor any of the other members involved made a single payment on the property and let the home go into default. They have been charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1349 and 1343. If convicted, the defendants face a maximum sentence of twenty years in federal prison.

Comments (0)