Florida Loan Officer Sentenced in FHA Fraud Case

by devteam June 26th, 2012 | Share

A Florida loan officer has beenrnsentenced to four-and-a-half years in prison and ordered to pay $9.2 million inrnrestitution to the Department of Housing and Urban Development (HUD) for hisrnrole in a mortgage fraud scheme that targeted the Federal HousingrnAdministration (FHA). Alejandro (“Alex”) Curbelo of Miami had pleaded guilty tornone count of conspiracy to commit wire fraud in April.  In addition to 54 months of incarceration he mustrnserve three years of supervised release.</p

According to documents filed in the U.S.rnDistrict Court in Miami, from approximately February 2006 through July 2008rnCurbelo, then a loan officer for Great Country Mortgage Bankers in Miami,rnassisted in the sale and financing of condominium units at Dadeland Place andrnPelican Cove on the Bay.   He assisted borrowers to obtain loans who werernunqualified due to insufficient income, high levels of debt, and outstandingrncollections.  </p

Curbelo admitted that he conspired withrnothers to create and submit false applications and other documents to FHA onrnbehalf of the borrowers and to offering cash back to the borrowers as anrnincentive for them to purchase the units. rnThe closing costs were paid on behalf of the borrowers by interstaternwire which enabled the wire fraud charges. rn</p

After the loans closed the unqualifiedrnbuyers failed to meet their required payments and defaulted on theirrnloans.  HUD, which insured these loans,rnwas required to take title to the units after foreclosure and pay lenders the outstandingrnbalance of the loans.  The fraud cost HUDrnmore than $9.2 million. </p

The case was investigated by the HUDrnOffice of Inspector General as participants in the Miami Mortgage Fraud StrikernForce and the Finance Fraud Enforcement Task Force.

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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