20 Charged in $40M Bank, Mortgage Fraud Scheme

MIAMI (AP) — Federal prosecutors say 20 people have been charged in South Florida in a $40 million bank and mortgage fraud scheme.

According to the indictment, the defendants conspired to submit false loan applications and related documents to multiple banks for the purpose of obtaining approximately $40 million in mortgage loans and home equity lines of credit. This resulted in approximately $20 million in losses to the banks.

The 20 defendants are charged with conspiracy to commit bank fraud, bank fraud and other mortgage fraud charges. If convicted, they face maximum sentences of 30 years in prison on each count.

U.S. Attorney Wifredo A. Ferrer said in a statement Thursday that the prosecution was “shocking” due to the number of real estate and bank industry professionals charged in a single indictment.

Source: Associated Press