3 more guilty in $64 million mortgage fraud scheme

Author: associated press

MIAMI (AP) – Three more people have pleaded guilty in Miami for their roles in a $64 million mortgage fraud scheme, bringing to 25 the number of guilty pleas in the case.

Prosecutors said Tuesday that 57-year-old Hector Hernandez, 62-year-old Aleida Fontao and 58-year-old Olga Hernandez pleaded guilty to wire fraud conspiracy involving a financial institution. Hector Hernandez also agreed to forfeit $8 million in profits from the scheme.

The case revolves around Great Country Mortgage Bankers, which prosecutors say specialized in Federal Housing Administration loans targeted at first-time and low-income buyers and those with poor credit. Evidence shows the company falsified documents to get the FHA loans, then sold them at a profit and paid borrowers cash kickbacks.

If loans foreclosed, the government had to pay the balance to the lender.

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