Man admits to role in multi-million dollar mortgage fraud

by Justin da Rosa07 Dec 2015
A New Jersey man admitted to recruiting straw buyers and submitting fraudulent mortgage applications, U.S. Attorney Paul Fishman said last week.

Miguel LaRosa pleaded guilty to conspiracy to commit wire fraud.

According to court documents, LaRosa admitted that between March 2011 and November 2012 to conspiring with others to obtain fraudulent mortgages using applications containing falsified information and closing documents.

He also admitted to using straw buyers with whom he crafted inaccurate bank account certifications, prepared false appraisal reports, back-dated deeds, and used unlicensed agents to close transactions and divvy out the proceeds from the mortgages, according to a release from the New Jersey Attorney’s Officer. 

The ploy resulted in more than $6 million in fraudulent loans and exposed the FHA to over $2 million in potential losses.

Attorney Fishman credited a number of FBI agents, the U.S. Postal Inspection Service, and HUD agents, among others, with helping expose the fraud.

The case was a part of President Obama’s Financial Fraud Enforcement Task Force.

“The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources,” the FBI said in a release. “The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.”


  • by Tom | 12/7/2015 10:32:01 AM


  • by Hazel Haney | 1/29/2016 12:37:29 PM

    R we finally waking up? Seems sometimes we're almost glad to see people get over on government! Mentally helped along by us against them attitude. Task force set up by Pres Obama one of best things done


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