Industry NewsMortgage

Six more headed to prison for roles in Miami condo mortgage fraud scheme

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A father and son who worked as real estate brokers are among a half-dozen defendants who have been sentenced to prison in recent weeks for their participation in a multi-million dollar mortgage fraud scheme at a luxury apartment complex on Miami's Brickell Bay Drive.Prosecutors said the defendants used straw buyers to purchase residential properties at The Jade apartment complex, submitting mortgage loan applications and supporting documents containing false information to fraudulently obtain more than $5.6 million in mortgage proceeds from lenders.The defendants submitted false HUD-1 statements to lenders, and created a second version of the HUD-1 statements listing the actual sales prices that they provided to the seller, prosecutors said. To keep the scheme going, the defendants made some mortgage and condominium association payments and collected rental income for the units. The mortgage fraud proceeds were diverted into shell companies for the defendants' personal use, prosecutors...