Michael Prieto, Mail Fraud, New Hampshire 2015

CONCORD, New Hampshire – A New Hampshire man has been sentenced to 72 months for his role in a mortgage rescue scheme, according to the United States Attorney’s office.

Michael Prieto, the mastermind behind the scheme, was convicted of mail fraud and sentenced to 5.5 years in prison. The scheme, which took advantage of homeowners during the 2008 mortgage crisis, involved Prieto defrauding distressed homeowners out of their properties and then obtaining money by lying on subsequent mortgage applications.

The scheme, which was a complex and multi-faceted operation, involved Prieto using false information to convince banks to issue loans on properties that were already in foreclosure. He would then sell the properties, keeping the equity for himself.

Prieto was indicted in 2014 and convicted in 2015. He appealed his conviction, but the First Circuit Court of Appeals in Boston, Massachusetts, upheld the conviction and sentence.

In its decision, the court rejected Prieto’s argument that the government improperly charged him with a single count of mail fraud. The court found that Prieto’s actions were part of a larger scheme to defraud homeowners and that the single charge was appropriate.

United States Attorney Emily Gray Rice praised the work of the government in bringing Prieto to justice. ‘This was an important victory for the government,’ she said. ‘Individuals engaged in fraudulent mortgage rescue schemes took advantage of honest homeowners at their most vulnerable time. People like the defendant, who seek to leverage people’s economic distress into personal gain, must be held accountable.’

Prieto’s appeal was defended by Assistant United States Attorney Seth R. Aframe. The underlying investigation was conducted by the Federal Bureau of Investigation and the Postal Inspection Service. The case was prosecuted in the trial court by AUSA Michael Gunnison and AUSA Mark Zuckerman.

The sentencing of Prieto serves as a warning to others who might consider engaging in similar schemes. ‘This kind of conduct will not be tolerated,’ Rice said.

The case is a reminder that the government will take action against individuals who engage in financial crimes.

Related Federal Cases