Texas Woman Sentenced for Role in Fraud Scheme

Veronica DeGuzman, of San Antonio, has been sentenced to 75 months in federal prison for carrying out a mortgage fraud scheme involving three San Antonio and Spring Branch, Texas-based residential properties, three financial institutions and more than $1 million in foreseeable losses. In addition, U.S. District Judge Xavier Rodriguez ordered that DeGuzman pay $1.67 million in restitution to her victims and be placed under supervised release for a period of five years after completing her prison term. On Oct. 2, 2008, DeGuzman pleaded guilty to one count each of financial institution fraud and aggravated identity theft. Her husband, Fred DeGuzman pleaded guilty to the same charges on Nov. 18, 2008. Sentencing for Fred DeGuzman has been scheduled for March 20, 2009 before Judge Rodriguez. By pleading guilty, the defendants admitted that from June to November 2007, Fred DeGuzman, using an alias, and Veronica DeGuzman contacted individual sellers of residential property and enter agreements to purchase the property for an inflated price, with the excess of the stated price over the actual sales price being returned to a corporation owned and controlled by the defendants. Using the alias, as well as falsified employment and income information, Fred and Veronica DeGuzman applied for and obtained 100% financing. After one or two mortgage payments, the mortgage went into default causing losses to the lenders.