A former Connecticut state representative is facing as many as five years in prison after pleading guilty to charges stemming from a mortgage fraud conspiracy that involved lying about the nature of “gift” money that was to be used to buy a home in Bristol.
According to the U.S. Attorney’s Office for the District of Connecticut, Victor Cuevas, who resigned from the Connecticut General Assembly in March 2016, pleaded guilty this week to one count of conspiracy to commit bank fraud.
According to court documents and statements made in court, in the summer of 2013, Cuevas, who was both a City of Waterbury employee and the state representative for the 75th District of Connecticut at the time, wanted to purchase a residence in Bristol with a loan backed by the Federal Housing Administration.
Cuevas, with the assistance of others, told an unnamed mortgage bank that he planned to use gifted funds to purchase the property. But the money was not gifted to Cuevas. The money was actually loaned to Cuevas for the purpose of buying the home in question.
And the person behind the loan to Cuevas? A fake “relative” who was actually a subordinate employee at the City of Waterbury.
According to the U.S. Attorney’s Office, Cuevas first represented to the mortgage bank that an individual who he identified as his nephew was providing him with cash to purchase the property as a gift. But the “nephew” was one of Cuevas’ subordinates in the City of Waterbury government.
When the mortgage lender asked for the “nephew’s” bank account statements to prove that he had the money to gift to Cuevas, Cuevas withdrew the mortgage application, the U.S. Attorney’s Office said.
Then, a few weeks later, Cuevas had a different Waterbury employee “gift” him $7,000. Cuevas identified the gift-giver as his “cousin.”
According to the U.S. Attorney’s Office, both individuals signed a HUD statement under oath that the funds were a “gift” and that there was no expectation of the money being repaid.
However, as soon as the mortgage closed, Cuevas re-paid the employee the $7,000.
In a Connecticut district court Monday, Cuevas waived his right to indictment and admitted his guilt in the scheme.
Cuevas is facing a maximum sentence of five years for his crime. His sentencing is scheduled for Sept. 21, 2016.