A Florida title attorney's six-year scheme defrauded lenders, private funders, and title insurers
A former Florida attorney who operated his own title company has pleaded guilty to three federal counts of wire fraud after prosecutors say he spent nearly six years deceiving private lenders, financial institutions, and title insurance underwriters through falsified mortgage documents and fraudulent closings.
Michael Saracco, 40, of Cocoa, Florida, the former owner of Driftwood Title and All Florida Property Solutions (AFPS), entered the plea following an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG) and the Brevard County Sheriff's Office.
US Attorney Gregory W. Kehoe announced the charges. Saracco faces a maximum of 20 years in federal prison per count. Sentencing is scheduled for December 2.
A scheme built on falsified closings
According to court documents, the fraud ran from August 2019 through July 2025. Saracco solicited private lenders and funding companies for loans backed by properties he claimed to own or intended to purchase, misrepresenting those properties as free of encumbrances.
He then conducted real estate closings and told lenders he had filed mortgage documents with the appropriate county clerk's office, a representation prosecutors say he did not honor.
The mechanism compounded with each transaction. Saracco allegedly sought follow-on loans from new private lenders without disclosing existing mortgages, then arranged property sales that funneled financial institution wire funds through Driftwood escrow accounts, with buyers unaware of unrecorded liens.
Prosecutors say he diverted proceeds meant to retire existing debt through AFPS, while Florida ranked among the five highest-risk states for mortgage fraud indicators in Q1 2026, according to Cotality, with the state's index rising more than 3% from the previous quarter.
Prosecutors say Saracco also issued title commitments falsely stating that Driftwood had obtained policies backed by underwriters, when no such policies had been issued.
Court documents state the scheme netted Saracco "hundreds of thousands of dollars" in seller proceeds, though the full scope of losses has not been publicly disclosed.
Florida fraud risk and what brokers need to watch
The Saracco case lands as undisclosed real estate debt — the precise fraud type at the center of the scheme — posted the largest year-over-year increase of any fraud category in Q2 2026, rising 2.6%, according to the Cotality National Mortgage Application Fraud Risk Index.
The index reached 132 in Q2 2026, with an estimated 1 in 119 mortgage applications showing fraud risk indicators, according to Cotality.
Matt Seguin, senior principal of fraud solutions at Cotality, previously told Mortgage Professional America that pattern-based fraud is among the hardest risks to contain.
"Pattern fraud is really tough. I've been really harping on lenders to have a system, a database that you proactively track patterns and look for those kinds of risks," Seguin said.
For brokers working with private funders, the Saracco case is a reminder that vigilance around undisclosed debt and encumbered properties requires diligence beyond origination.
Confirming recorded lien status and protecting clients against wire fraud throughout the closing process are steps industry experts increasingly consider non-negotiable.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
