A former Florida real estate associate and mortgage broker who was involved in a $2.4 million fraud scheme will have to serve approximately 11 years in jail, says U.S. District Judge William Zloch of the Southern District of Florida.
Jose Alvarado was found guilty in September of eight counts of wire fraud and six counts of bank fraud. He operated a mortgage fraud scheme by controlling and operating three real estate entities in Miami: South Florida Realty, American Mortgage Lending and Royal Atlantic Title.
From February 2004 through November 2009, Alvarado and his co-conspirators used their control over these three companies to falsify and misrepresent important facts provided to financial institutions in order to secure loans totaling more than $2.4 million. The loans were often obtained by submitting fraudulent documents such as inaccurate tax returns, W-2 forms, bank statements and employment verifications.
Court evidence showed that Alvarado and his co-conspirators subsequently enriched themselves by diverting loan proceeds, collecting brokerage fees, and inflating real estate commissions generated by the sales of the properties.
The defendants used their experience in the real estate industry to obtain control of multiple properties during the housing boom with the intent to flip them for a profit or control them as rental units. The scam was concealed by executing quit-claim deeds and failing to record mortgage deeds and other documentation with the State of Florida.
Two of Alvarado’s co-conspirators were previously sentenced for their participation in this scam. Alberto Morejon, a former loan closer and title agent, will serve 3 years in prison while Alvarado’s sister, Reyna Orts, a former mortgage broker, was sentenced to 50 months in jail.
