Business executive convicted in mortgage fraud case

by Justin da Rosa20 Nov 2015
A businessman in Mathuen Massachusetts pleaded guilty to conspiracy to defraud banks and mortgage companies through illegitimate short sales.

Dahianara Mora will be sentenced by Judge Rya W. Zobel on February 17, according to a release by RealEstateRama, a publication dedicated government and public real estate.

Moran allegedly conspired with a local loan officer and a real estate agent to defraud a number of lenders through short sale scams throughout Massachusetts.

Short sales provide a foreclosure-like option that often result in lost funds by lenders, but release the borrower from commitments to pay the outstanding balance.

The plot took place between August 2007 and June 2010, a time when many homeowners found themselves underwater as a result of the financial crisis. Many fraudsters took advantage of homeowners this time through various scams.

Moran and co-conspirators allegedly submitted false documents to a number of lenders to entice them to enter short sales, while also convincing owners’ banks to finance the deals.

According to RealEstateRama:

The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties, when in fact, the transactions were not arms-length, and the sellers retained control of (and frequently continued to live in) the properties after the sale.

An example provided was that Moran pretended to sell two properties she owned to her relatives, but remained in control of those homes.

Moran allegedly prepared and submitted fraudulent documents to support the loan applications.

Moran faces no more than 30 years in prison, three years of supervised release, and a $1 million fine. However, that is the maxim sentence.


Should CFPB have more supervision over credit agencies?