Santa Cruz had previously pleaded guilty pursuant to a plea agreement to an Information charging him with twenty counts of wire fraud to defraud multiple mortgage lenders. The Information specifically charged him for his involvement as a loan officer in at least 20 separate fraudulent mortgage loans totaling over $800,000. Dean Sexton, a former Louisville closing attorney, and Stan Siwek were also previously prosecuted for their involvement with Santa Cruz in these illegal schemes.
The indictment references the following properties:
10121 Springhurst Garden Circle
2225 Strathmoor Blvd
2041 Bashford Manor Ln
1684 Victory Court
4103 Hunsinger Woods Place
1016 Cecil Ave
3746 Greenwood Ave
2019 Woodland Ave
1364 Cypress St
3505 W. Muhammad Ali Blvd.
404 N. 38th St
2113 Wilson Ave
2021 Woodland Ave
3231 Greenwood Ave
1829 Lee St.
720 W. Catherine St.
4608 Unseld Blvd.
The defrauded lenders include First Union National Bank of Delaware, Mortgage Express, Meritage Mortgage, New Century Mortages, Homecoming Financial, Chase Financial Services and Mortgage Lending Network.
The plea agreement stated that between December 2000 through 2002, Santa Cruz worked with others to defraud a number of residential mortgage lenders while he was working as a loan officer at a Louisville, Kentucky mortgage brokerage company. The fraudulent scheme worked by Santa Cruz and others providing fraudulent representations to the lenders in order to induce them to fund loans that they otherwise would not have funded. To execute the scheme they caused fraudulent loan documents, such as loan applications and HUD-1 settlement agreements, to be created. These documents contained, among other things, false information relating to borrowers’ employment, income, assets, down payment, and credit information. These documents were then provided to lenders in support of borrowers’ loan applications.
During the course of the scheme, Santa Cruz was involved in the following: creating false borrower loan applications, which falsified the financial condition of potential borrowers; providing lenders with false employment and false financial information, including W-2 Forms and bank statements of potential borrowers; creating false closing documents that did not reflect the actual selling price of the real estate, falsely represented that down payments were made from the buyer to the seller, and concealed that proceeds were distributed to buyers following their closings; creating fictitious down payment checks that made it appear to the lender as if the buyer had made a down payment to the seller when, in fact, no down payment had been made; creating and filed false title documents that created the appearance that real estate had previously been transferred; creating documents that appeared to remove liens on real estate even though the liens were not actually removed; providing lenders with fraudulently inflated appraisals; and using names of fictitious loan brokers to process fraudulent loans.
This case was related to other cases prosecuted by the United States Attorney’s Office. Stan Siwek was prosecuted for his similar involvement in the scheme and was sentenced to 15 months on July 12, 2007. Dean Sexton, a former Louisville closing attorney was sentenced to two-and-a-half years on June 18, 2007, for his role in the scheme.
The case was prosecuted by Assistant United States Attorney Bryan Calhoun, and it was investigated by the Federal Bureau of Investigation.
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source: mortgagefraudblog.com
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