Ex-mortgage broker convicted in $2.4M mortgage scheme
Florida real estate agent sentenced to 11 years in prison
A former mortgage broker was sentenced to more than 11 years for his role in a multimillion-dollar mortgage fraud scheme, according to the U.S. Department of Justice.
Jose Alvarado was found guilty on Sept. 9, of eight counts of wire fraud and six counts of bank fraud. He was sentenced to serve 135 months in prison for his role in a $2.4 million scheme.
The Florida-licensed real estate associate and broker was sentenced on Thursday by U.S. District judge William Zloch and was ordered to serve three years of supervised release.
Two of Alvarado’s co-conspirators were previously convicted at the same trial on various counts of wire and bank fraud.
Alvarado and his counterparties were convicted of operating a mortgage fraud scheme by controlling three real estate entities in the Miami area, including South Florida Realty, American Mortgage Lending and Royal Atlantic Title.
From 2004 to 2009, Alvarado and his associates were convicted of using their control over these three companies to falsify and misrepresent facts provided to financial institutions to fraudulently secure loans totaling more than $2.4 million.
The loans were often obtained through submitting falsified supporting documentation, such as false tax returns, W-2 forms and bank statements.
During the trial, evidence revealed that Alvarado and his co-conspirators took the finances from the false documentation, while also diverting loan proceeds, collecting brokerage fees and inflating commissions generated by the sales of properties.
Additionally, they obtained control of multiple properties during the housing boom with the intent to flip and sell the units for a profit or use the units as rental properties.
The defendants were able to conceal the scheme by executing quit-claim deeds and failing to record mortgage deeds and other documentation.