Ex-Rep Cuevas Gets Probation in Mortgage Scam

NEW HAVEN, CT – A former Connecticut state representative dodged a jail cell today, receiving a year of probation and a $1,000 fine for his role in a calculated mortgage fraud scheme. VICTOR CUEVAS, 52, of Bristol, was sentenced by U.S. District Judge Jeffrey A. Meyer in New Haven after pleading guilty to one count of conspiracy to commit bank fraud.

The scheme, uncovered by the Connecticut Public Corruption Task Force, dates back to the summer of 2013, when CUEVAS, then a Waterbury city employee and the state representative for the 75th District, sought an FHA loan to purchase a Bristol residence. The Department of Housing and Urban Development insures these loans, and strict rules govern how funds can be used.

Cuevas wasn’t playing by those rules. He falsely claimed he was receiving “gifted” funds for the down payment. But the money wasn’t a gift at all – it was a loan, cleverly disguised. He initially attempted to use a subordinate city employee, falsely identified as his nephew, as the source of the “gift.” When the lender requested bank statements to verify the funds, Cuevas quickly withdrew the application. He wasn’t deterred.

Weeks later, CUEVAS enlisted a different Waterbury employee, this time falsely identified as his “cousin,” to “gift” him $7,000. Both employees signed sworn statements with HUD affirming the money was a genuine gift with no expectation of repayment. Cuevas promptly repaid the employee the $7,000 as soon as the mortgage closed – a clear indication of the fraudulent intent. The whole operation was a calculated attempt to skirt FHA regulations and secure a loan under false pretenses.

CUEVAS resigned from the Connecticut General Assembly in March 2016, likely anticipating the fallout from the investigation. The investigation was a collaborative effort by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and multiple other federal agencies comprising the Connecticut Public Corruption Task Force. Assistant U.S. Attorney Sarah Karwan prosecuted the case.

Federal authorities are urging citizens to report suspected corruption. The Connecticut Public Corruption Task Force can be reached at 203-238-0505. This case serves as a stark reminder that even those in positions of public trust are not above the law, and fraudulent schemes will be met with federal prosecution.