Agent gets jail time for mortgage fraud

by Justin da Rosa22 Oct 2015
Former real estate agent Hubert Rotteveel will spend three years and four months in prison for one count of mail fraud, according to the U.S. attorney’s office.

Rotteveel was found guilty by a federal jury of the charge in September 2014. According to trial evidence, Rotteveel acted as the real estate salesman for 13 properties in Dixon, Calif. Over $7 million in loans were originated on the properties for two buyers in seven months.

“Hubert Rotteveel manipulated every aspect of the real estate process for his personal gain. As so often occurs in these cases, the result was losses to the financial institutions and neighborhoods burdened with foreclosed properties,” U.S. Attorney Benjamin Wagner said following the original trial, according to an FBI release. “We are grateful for the diligence, professionalism and cooperation that we have received from the FBI, the IRS, and all of our law enforcement partners in prosecuting these cases.”

Rotteveel allegedly worked with originators to falsify income of the buyers to entice lenders to lend on the properties.

“The defendant induced lenders to fund loans under false pretenses and then diverted a portion of the loan proceeds to himself,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation following the trial, according the FBI release. “Each of the homes purchased during the course of the scheme was foreclosed upon. The impact of this type of fraud on homeowners and communities is devastating. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”

The mortgage industry was decimated following the economic downturn, with many leaving the industry after being targeted by regulators for mortgage fraud. This case, and others like it, however, point to other financial players that had a hand in the growing number of fraud cases prior to, and after, the recession.


  • by Realtor Rick | 10/22/2015 11:55:23 AM

    Darn right he should have been prosecuted and convicted. Agents like this give our industry a bad rep. If I were the judge I would have given him a longer sentence

  • by P.r. | 10/22/2015 6:17:38 PM

    Realtor Rick. Realtors do not finance mortgages. And Canadians are under the same axe - are Banks any better when it comes to full transparency ?

  • by | 10/22/2015 6:25:40 PM

    And also R.rick, did Americans rally against the Blatant fraud in 2007-2008? Those coloring the picture are to be accountable for the representation. Paulson (neocon) was appointed by Bush AFTER he quit CEO of G S. And was paid over 250 million in one day from the Fed reserve. Would you give a stiff sentence? Please remember USA went to war in Iraq over lies made by the news reporter who wouldn't disclose her sources (none). She was subsequently incarcerated for her crime as was her Lawyer husband L.libby for what crime? Bush later released them as well , he released those perpetrators of treason caught in broad daylight "celebrating" the tragic terrorist attack on 911 in Central Park - video taping themselves. So, realtor rick - Bush released these enemies of the state back to Isreal where they went on state tv to celebrate their crime against the people of the good ol USA.


Is TILA-RESPA a good or bad thing long term?