Fraud and Prevention

Fourteen Charged in Virginia Mortgage Fraud Scheme

By James Comtois
September 30, 2009

A federal grand jury has indicted 14 individuals on mortgage fraud charges stemming from an alleged scheme involving 35 homes in Fairfax County, Va., and causing more than $9 million in losses.

According to Neil MacBride, U.S. attorney for the Eastern District of Virginia, the 14 individuals are charged with allegedly engaging in a conspiracy to defraud financial institutions into making fraudulent mortgage loans and profiting from the fees and proceeds. The alleged conspiracy involved real estate agents, a loan officer and individuals who fraudulently purchased properties. According to the indictment, the total amount of mortgage loans approved through the alleged conspiracy exceeds $24 million.

The indictment alleges that the conspirators would identify individuals with good credit but who had no intent to live in the home and pay them to act as straw buyers for homes in Fairfax County. The defendants also allegedly referred unqualified buyers - individuals who lacked the finances, credit rating or legal status to obtain a certain loan amount - to a loan officer to qualify them for the mortgage.

During the course of the scheme, the defendants would allegedly help prepare loan applications that contained false information that included the applicant's employment, income, assets, immigration status and intent to live in the property as a primary residence. The fraudulent mortgage loan applications also failed to list other properties purchased by the straw buyers or unqualified buyers.

According to the indictment, the conspirators would also transfer money into the bank accounts of straw buyers and unqualified buyers to inflate their assets and then transfer the money back out shortly after settlement on the properties. The scheme also involved corroborating false employment and income information included on the loan applications.

The defendants charged in the indictment include Ruben Rojas, a real estate agent from Vienna, Va.; his sister Lourdes Rojas Almanza, a loan officer and agent for Almanza Corp. from Falls Church, Va.; his sister-in-law Litcia Linares, a real estate agent from Falls Church; and his brother Jaime Nino Rojas from Falls Church.

Fidelino Ferrufino from Miami is accused of buying at least three properties, which resulted in mortgage loans of $2.3 million.

The remaining defendants, who are all from Springfield, Va., are charged with allegedly buying properties in the scheme.

Juan de la Cruz Aguayo is alleged to have bought at least three properties, which resulted in mortgage loans of more than $1.6 million. Yesenia Banegas is accused of buying at least three properties, which resulted in mortgage loans of more than $2.3 million. Oscar Barahona, also of Springfield, is accused of buying at least four properties, which resulted in mortgage loans of more than $3 million.

Santos Euceda Manzanares is charged with allegedly buying at least five properties, which resulted in mortgage loans of $2.5 million. Delmy Mendieta is alleged to have bought at least three properties, which resulted in mortgage loans of $1.7 million. Wilmer Mendieta is accused of buying at least three properties, which resulted in mortgage loans of $1.8 million.

Maria del Carmen Rapalo is charged with allegedly buying at least three properties, which resulted in mortgage loans of $2.1 million. Jose A. Rodriguez is accused of buying at least three properties, which resulted in mortgage loans of $1.8 million. Finally, Jose Villatoros is accused of buying at least three properties, which resulted in mortgage loans of more than $1.9 million.