David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663


Twenty South Florida Residents Charged in $40 Million Bank and Mortgage Fraud Scheme
Real Estate Industry Professionals and Bankers Among Those Charged

U.S. Attorney’s Office September 29, 2011
  • Southern District of Florida (313) 226-9100
MIAMI—Twenty individuals, including numerous licensed real estate industry professionals, have been charged with conspiracy to commit bank fraud and bank fraud in connection with their alleged participation in a $40 million mortgage fraud scheme. According to the indictment, from March 2006 through June 2008, the defendants conspired to submit false loan applications and related documents to multiple banks for the purpose of obtaining approximately $40 million in mortgage loans and home equity lines of credit (HELOC). This resulted in approximately $20 million in losses to the banks.

The indictment was announced today by Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, FBI Miami Field Office; Michael K. Fithen, Special Agent in Charge, U.S. Secret Service (USSS); Jon T. Rymer, Inspector General, Federal Deposit Insurance Corporation (FDIC-OIG); and James K. Loftus, Director, Miami-Dade Police Department (MDPD), along with members of the Federal-State Mortgage Fraud Strike Force.

The 25-count indictment charges the following defendants:

Alina Rubi, 45, of Miami (mortgage broker);

Camilo Garcia, 39, of Miami (mortgage broker and realtor);

Sylvia M. Zagales, 48, of Miami Lakes, Fla., (title agent);

Ivette Carreno, 34, of Miami (bank manager);

PedroRubi, 42, of Miami (mortgage broker);

Dianelys Garcia, 37, of Miami (mortgage broker and realtor);

Luis Pardo Dieguez, 51, of Miami (realtor);

Galia Fernandez, Jr., 50, of Miami (mortgage broker and realtor);

Sheena Eizmendiz, 36, of Miami;

Ivis R. Hernandez, 41, of Miami (realtor);

Jose Raul Hernandez, 52, of Miami (realtor);

Yovanis Obregon Jimenez, 38, of Key Largo (real estate appraiser);

Jose Manuel Pardo, 49, of Miami (realtor);

Sandra M. Rodriguez, 50, of Miami,

Mayra Martinez Suarez, 46, of Miami (mortgage broker);

Laura E. Diaz, 57, of Hialeah, Fla.;

Juan R. Prieto, 49, of Miami (realtor);

Flavia E. Perez, 52, of Miami (mortgage broker);

Jose Antonio Diaz, 75, of Miami,

and Johny Hernandez, 25, of Miami (mortgage broker).

The defendants are variously charged with conspiracy to commit bank fraud (count 1); bank fraud (counts 2-21); receipt of gifts for procuring loans (counts 22 and 23); and providing gifts for procuring loans (count 24 and 25). The indictment also seeks the forfeiture of real property and money derived from the fraud. If convicted, the defendants face a maximum statutory penalty of up to 30 years in prison on each count.

U.S. Attorney Ferrer stated, “Even by South Florida fraud standards, today’s prosecution is shocking. Never before have we seen so many real estate and bank industry professionals charged in a single indictment. In addition, the defendants’ $40 million fraud spanned two years and resulted in $20 million in actual losses to the victim banks. Our commitment to stomp out mortgage fraud is unwavering. We will continue to prosecute all those involved in fraud, from straw buyers and sellers, all the way up the chain to corrupt bank officials and mortgage brokers.”

“Combating mortgage fraud continues to be a priority due to the impact of lending and the housing market on the nation’s economy,” said Special Agent in Charge Gillies. “This is a warning to those in the mortgage industry who think they can get away with creating phony documents to line their pockets with stolen loan proceeds. The FBI will continue to work with its federal, state and local law enforcement and regulatory partners to bring the perpetrators of these crimes to justice.”

“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney for the Southern District of Florida and our law enforcement colleagues in announcing these indictments today. We are committed to our partnerships with federal, state, and local law enforcement to address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal misconduct that undermines that integrity will be held accountable,” said Inspector General Rymer.

Miami-Dade Police Director Loftus added, “Though we are pleased with the outcome of this investigation, we recognize that the indictment of this organization is only a small part of a systemic, ongoing criminal enterprise. We will remain vigilant in our pursuit of these offenders.”

As part of the scheme, brother and sister team, Alina Rubi and Camilo Garcia used Ivette Carreno, then a manager at Regions Bank, to obtain approval of nearly 200 fraud-based HELOCs.

Alina Rubi, Camilo Garcia and his wife, Dianelys Garcia, and other co-defendants prepared false documents, such as proof of employment, tax returns, and property deeds, to support loan applications that were replete with false statements. Other co-defendants, such as Pedro Rubi, Luis Pardo Dieguez, and Ivis Hernandez, prepared mortgage and HELOC loan applications on behalf of unqualified borrowers and buyers. The loan applications and related documents, which were submitted to lenders, contained numerous false statements regarding the borrowers’ and buyers’ employment, income, deposits, assets, liabilities, and other information necessary for lenders to assess their qualifications to borrow money.

Some of the false statements included misrepresentations that the borrowers were doctors, dentists, engineers, or engaged in other high-paying professions, with false yearly incomes, sometimes exceeding $300,000.

In many instances, the unqualified buyers lied about property ownership, in that they did not even own the properties for which they received the equity lines of credit. On some occasions, the defendants used the HELOC proceeds to later purchase the very properties for which they had obtained the HELOC loans.

Alina Rubi, Camilo Garcia, Pedro Rubi, Luis Pardo Dieguez, and Galia Fernandez recruited individuals, and paid others to recruit individuals, to fraudulently obtain mortgage and HELOC loans on the properties. Among the individuals recruited to act as unqualified buyers and borrowers were defendants and co-conspirators Sheena Eizmendiz, Yovanis Obregon Jimenez, Jose Manuel Pardo, Sandra M. Rodriguez, Mayra Martinez Suarez, Laura Diaz, Juan Prieto, Flavia Perez, Jose Antonio Diaz, and Johny Hernandez.

To further the fraud scheme, Alina Rubi, Camilo Garcia, and other co-defendants used Silvia Zagales, a title agent, and her company, the Title Services Group, to divide and disburse, among the defendants, millions of dollars in loan proceeds.

As part of the closing procedure, Zagales prepared and submitted to lenders documents that falsely stated, among other things, that borrowers supplied their own funds at the closing of the sale transactions; that she had sufficient loan proceeds and cash-to-close funds to cover the disbursements approved by the lender; and that good faith deposits had been provided by borrowers. Zagales and her co-conspirators fraudulently disbursed the loan proceeds to the sellers and others. In some instances, Zagales used the loan proceeds to satisfy the buyers’ cash-to-close obligations, and would often pocket seller proceeds through another company that she owned and operated. In addition, to conceal the fraud and to conduct multiple mortgage loan and HELOC closings with the same properties, Zagales and her co-defendants, in some cases, failed to timely record, and falsely recorded, mortgage deeds and mortgage documentation with State of Florida authorities.

This law enforcement action is sponsored by the Financial Fraud Enforcement Task Force. The interagency Financial Fraud Enforcement Task Force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

U.S. Attorney Ferrer commended the investigative efforts of the FBI, U.S. Secret Service, the FDIC, and the Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Courtesy FBI

David Saks

Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.


Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.





"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


  Real Estate Crimes


Click "HERE" For Today's Question



TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis



America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 4 commentsDavid Saks • September 29 2011 11:20PM


Ouch!!  I am sure that even more heads will roll as this progresses!!

Posted by Bill & Cyndi Daves, TeamDAVES - Your REALTORS In the GA/NC Mountains! (Hiawassee, Young Harris, Blairsville, Hayesville, Murphy and Beyond!) almost 9 years ago

Thanks for the reviewing the case, Bill & Cyndi.

Posted by David Saks ((retired)) almost 9 years ago

I remember that these were the days were everyone thought that nontraditional cash out" schemes were in ingenious.... well, that was risky enough, but then to add deception to the practice...

Posted by Chandler Real Estate Liz Harris, MBA, #ChandlerRealEstateAgent (Liz Harris Realty) almost 9 years ago

As long as there's creative financing there'll be creative swindling, Liz.

Posted by David Saks ((retired)) almost 9 years ago

This blog does not allow anonymous comments