A six-year, $29,000,000 bank fraud scheme led by Eddie Contreraz, 48, of Frisco, Texas, collapsed this week as the mastermind and two co-conspirators pleaded guilty in federal court. Contreraz, the owner of Preferred Marketing Group, Inc. (PMG), admitted to orchestrating a sprawling operation that flooded banks with fraudulent loan applications backed by falsified pay stubs, W-2s, and income claims.
On Tuesday, Contreraz pleaded guilty before U.S. Magistrate Judge Renee Harris Toliver to one count of bank fraud. The charge carries a maximum penalty of 30 years in federal prison, a $1 million fine, and full restitution. Sentencing is scheduled for June 11, 2018. He remains on bond.
Last week, co-defendants Stephanie Loraine Contreraz, 27, and Abraham Valdez, 53, both of Frisco, Texas, pleaded guilty to one count of conspiracy to commit bank fraud. Each faces up to 5 years in prison, a $250,000 fine, and restitution. They too remain on bond pending sentencing.
From January 2011 through March 2016, Contreraz ran PMG, a company that promised clients access to loans, credit lines, and credit cards—services most applicants couldn’t secure on their own due to poor credit, lack of income, or missing documentation. Instead of honest applications, Contreraz supplied a factory of forgeries, producing high-quality fake documents that lenders routinely accepted as genuine.
Approximately 95% of PMG’s clients were approved using false information, including inflated incomes, fake managerial titles, and counterfeit employment records. Contreraz personally reviewed applications and instructed clients to lie. Employees, including the two other defendants, submitted these falsified materials electronically and escorted clients to lenders handpicked by Contreraz—officials he had corrupted or cultivated for cooperation.
The scheme generated at least 2,300 fraudulent loans, credit lines, and credit cards from over ten FDIC-insured banks. Three more defendants are set to plead guilty later this month. The seventh, Kwanghee Anh, remains a fugitive with an active arrest warrant. The DOJ’s takedown marks one of the largest bank fraud prosecutions in North Texas history.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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