Mortgage Fraud Scheme Leader Lazaro Villalba Pleads Guilty to an $8.3 Million Fraud!

Lazaro Villalba recently plead guilty to one count of conspiracy to commit bank fraud, wire fraud and mail fraud.

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According to the US Attorneys office, Villalba is one of fifteen defendants previously charged in a wide-ranging mortgage fraud scheme. Lazaro Villalba and other co-conspirators orchestrated a scheme through which they located properties for sale in the Southwest Ranches area of Broward County, then fraudulently purchased the properties through straw buyers and received cash back at the closings.

The defendants include:

Henry Quintero-Lopez;
Lazaro Villalba;
Dahomey Talavera;
Antonio Ramos;
Joaquin M. Perea;
Raul Eric Garcia aka Eric Garcia;
Martine Yanisse Castrillon;
Felipe M. Nunez;
Michelle Volcy;
Luc Bruna;
Maykel Clavero-Gonzalez aka Maykel Clavero;
Iray Ponte;
Nidia Rodriguez-Rial aka Nidia Rodriguez; and
Iliana Lima.

Villalba would offer the owner’s full asking price and then inflate the contract purchase price to allow New World International and D& H Investments of South Florida, in both of which he had an ownership interest, to receive a finder’s fee, assignment fee and/or additional funds to allegedly construct improvements to the properties, thus creating “instant equity.” Villalba and a co-defendant would then recruit individuals, who for a fee acted as straw buyers of the properties. Villalba and a co-defendant would obtain fraudulent pay stubs, IRS Form W-2s, verification of employment and verification of deposit forms. These documents would be submitted to cooperating mortgage brokers and the loans were approved to purchase the properties.

The scheme yielded 12 fraudulent loans, totaling approximately $8,300,000.

Sentencing is set for May 16. Villalba faces up to 20 years in prison and a fine of up to $250,000.

Every choice has a consequence. Mortgage Fraud run rampant, this story includes straw buyers, fraudulent appraisals, and fraudulent loan documentation material (W-2’s, Pay stubs, etc.). Villalba orchestrated the scheme and his guilty plea will soon bring an end to this massive Mortgage Fraud in South Florida.

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