Two Miami residents have pleaded guilty to participating in a mortgage fraud scheme involving the sale of condominium units in the Miami area.
Luis Michael Mendez, 44, and Wilkie Perez, 39, each pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud before U.S. District Court Judge Darrin P. Gayles in the Southern District of Florida.
In their pleas, both defendants admitted that they participated in a scheme to place straw buyers in condominium units owned by real estate developers who are members of Mendez’s immediate family in return for a share of the profits.
Mendez conspired with two Florida mortgage brokers to finance the fraudulent transactions with loans obtained by submitting false loan applications and supporting documentation.
According to court papers, Perez was a licensed mortgage broker who owned Kinetic Mortgage Group, Inc., a mortgage brokerage company in Miami, Florida. Perez admitted that he and Luis Mendez, one of Mendez’s immediate family members who owned and controlled the real estate developments, entered into an agreement in which Perez arranged for straw buyers to obtain financing to purchase units controlled by Luis Mendez.
Total losses associated with Mendez’s scheme exceed $3 million, while Perez admitted to obtaining more than $2.5 million in fraudulent loans.
The case is being investigated by HUD-OIG and FHFA, and is being prosecuted by Trial Attorneys Gary A. Winters and Brian Young of the Criminal Division’s Fraud Section.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
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Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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