Feds indict 10 in $14 million mortgage scheme allegedly headed by McCloskey - Caribbean Business

Upfront Yankee wrote:

Upfront Yankee urges you to open link and read full story. It is loaded with newsworthy facts. This news is really a shocker involving famous Puerto Ricans being indicted.

Upfront Yankee wrote:

Here is an AP story on the mortgage fraud in Puerto Rico. It is also posted earlier on Puerto Rico News - Topix:
http://www.oregonlive.com/newsflash/index.ssf...
10 accused of mortgage fraud at PR coastal resort
11/3/2009, 2:19 p.m. PST
JILL LASTER
The Associated Press
(AP)— SAN JUAN, Puerto Rico - A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico, federal officials said Tuesday.
The suspects are accused of a scheme in which buyers allegedly took out loans using fake documents overstating the value of a dozen Spanish-style mansions in the ritzy Palmas del Mar coastal resort community in Humacao, in southeastern Puerto Rico.
A federal indictment charges developer Joseph McCloskey Diaz split the difference with the buyers, the loans went unpaid and the properties passed into foreclosure.
"Now the banks are stuck with these houses" that are not worth as much as the mortgages, FBI spokesman Harry Rodriguez said.
A federal grand jury indicted the group Friday on 33 counts including bank fraud, money laundering and submitting false statements to a financial institution.
Nine people were arrested Tuesday morning, and McCloskey flew in from South Florida and turned himself in, according to the U.S. attorney's office.
All 10 pleaded not guilty, said Lymarie Llovet, spokeswoman for the U.S. attorney's office. They would face up to 30 years in prison and $1 million in fines if convicted.
The suspects include former salsa singer Miguel A. Matta Ponce de Leon-better known as Aldo Matta-who allegedly submitted false information to obtain loans to buy three properties worth $4.2 million from McCloskey, according to the indictment.
Matta's attorney could not be immediately reached for comment.
Authorities said the alleged scheme ran from 2004 to 2006 and involved properties ranging in value from $700,000 to $3.2 million.
Most of the homes involved are now in foreclosure proceedings.
"Mortgage fraud isn't a victimless crime," said Gilbert Garza, special agent in charge of Miami's Internal Revenue Service office. "It threatens the financial health of our communities and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property."
© 2009 Associated Press. All Rights Reserved.

Jorge wrote:

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One of the indicted was the guy who smacked Carlos Romero in the eye.
How do you like that?

NOT REALLY wrote:

<quoted text>Serves them right. They should make an example out of them.

Jorge wrote:

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Are you related to someone in Canada, who has your same last name?

NOT REALLY wrote:

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Ai, Jorge,?Cuantas veces te tengo que explicar el asunto de las computadoras? Ahora mismo estoy trabajando tarde y estoy utilizando la computadora del trabajo.

Jorge wrote:

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Vete pa' tu casa....te estoy gufeando. Ya estás fundi'o. LOL

NOT REALLY wrote:

caminar

Jorge wrote:

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¿Hace frío?
El frío abre el apetito.
Yo le achaco mis libritas al frío, no a mis mandíbulas...LOL