New London Woman Sentenced to More Than Three Years in Federal Prison for Role in Mortgage Fraud Scheme
|U.S. Attorney’s Office May 30, 2012|
According to court documents and statements made in court, from approximately 2004 to 2007, Jose Guzman, his daughter, Isaura Guzman, and others used mortgage brokerage, property management, and home improvement companies to arrange for individuals (“borrowers”) to purchase real estate, primarily residential housing properties located in New London County, by obtaining funding from various mortgage companies and mortgage originators after submitting false information on the borrowers’ mortgage loan applications. The fraudulent information included information regarding income, assets, employment, rent history, as well as the borrowers’ intention to make the properties their primary residence. The borrowers were compensated for participating in the scheme.
Isaura Guzman participated in the scheme, first as an assistant to Jose Guzman, and later as a licensed real estate agent for Elizabeth Athan Realty. Isaura Guzman bought and/or sold at least four houses as part of the conspiracy, and she recruited at least other three individuals into the scheme to act as buyers.
According to previously filed court documents, the government believes that more than 200 fraudulent mortgages were funded through this mortgage fraud scheme, causing more than $9 million in losses to lenders.
As part of her sentence, Judge Covello ordered Isaura Guzman to pay restitution in the amount of $7,811,695.44.
On June 14, 2010, Isaura Guzman pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud. Fifteen other individuals, including Jose Guzman, have pleaded guilty to various charges stemming from this scheme. Jose Guzman awaits sentencing.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Developmen, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and David T. Huang.
In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force or by sending an e-mail to email@example.com.
The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.