Jul 30, 2014

Woman Receives Probation In Waterford Mortgage Fraud Scheme

Rosa Garcia accused of helping to set up fake mortgages between 2004 and 2007

Woman Receives Probation In Waterford Mortgage Fraud Scheme

A 37-year-old New London woman will serve no jail time but will be forbidden to leave her home for over a year after being sentenced today for her role in a

David B. Fein, United States Attorney for the District of Connecticut, announced that Senior U.S. District Judge Alfred V. Covello sentenced Rosa Garcia to 14 months of probation. Garcia must also pay $1,663,149.69 in restitution to lenders affected by the fraud.

The charges against Garcia stem from a scam run from about 2004 to 2007, in which Guzman and others used mortgage brokerage, property management, and home improvement companies to arrange for the purchases of properties, primarily residences, in New London County. Individuals participating in the scheme received funding from mortgage companies and originators by submitting false information on income, rent history, employment, and other information on loan applications. These borrowers were compensated for their role in the fraud.

Fein said Garcia was employed by Guzman's real estate, mortgage brokerage, and property management businesses and helping with the purchase and sale of properties. This assistance included preparing and submitting fraudulent closing documents to lenders and verifying the information on them when lenders called to confirm.

Prosecutors estimate that the scheme funded over 200 fraudulent mortgages, resulting in losses of over $9 million to lenders.

Garcia pleaded guilty on May 17, 2010, to one county of conspiracy to commit mail fraud and wire fraud. Fifteen other people, including Guzman, have been convicted in the case. Guzman is still awaiting sentencing.

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