Fourth Defendant in Mortgage Fraud Scheme Sentenced to Prison

January 24, 2012

by Pennsylvania RealEstateRama

January 24, 2012 – (RealEstateRama) — The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a fourth defendant connected to a mortgage fraud scheme was sentenced today by Senior U.S. District Court Judge Edwin M. Kosik to spend five months in federal prison.

According to United States Attorney Peter J. Smith, Guillermo Laureiro, age 40, of Jefferson Township, Pennsylvania, previously pleaded guilty to a charge of mail fraud as an aider and abettor.

Laureiro was charged by an information filed by the U.S. Attorneys Office in September 2008, as a result of an investigation conducted by the Federal Bureau of Investigation (FBI). The information outlined a scheme whereby operators and employees of First Advantage Mortgage Company, which was based in Lake Ariel and later Hamlin, and had an office in Old Forge, used false appraisals and false documents, including false W-2 forms, false real estate appraisals, and false employment records, to qualify customers for inflated mortgages and loans during 1999 through 2005. Laureiro’s involvement in the scheme occurred in 2001. Some of those customers subsequently defaulted on the mortgages and loans resulting in losses to banks and other financial institutions. The amount of money involved during Laureiro’s involvement in the fraudulent scheme was between $200,000 and $400,000. The entire scheme involved between $1 million and $2.5 million, and involved between 10 and 50 victims. Laureiro admitted that he prepared numerous false documents, including W-2s and employment records, to qualify borrowers for inflated mortgages.

Laureiro is the fourth defendant connected to the scheme to be sentenced in federal court. Alex Gambini, the former owner/operator of First Advantage Mortgage Company, was previously sentenced by Judge Kosik to 57 months in prison. Benjamin Haughney, who was a mortgage broker for First Advantage Mortgage Company and the owner/operator of Four Star Mortgage Company, was sentenced to two years in prison. Richard Woods, a former real estate appraiser, was sentenced to 20 months in prison.

Judge Kosik also ordered Laureiro to serve three years on supervised release following his prison sentence and pay a $4,000 fine. After Laureiro is released from prison, he must spend an additional five months on house arrest. The court deferred ruling on restitution in the matter for 90 days.

In his plea agreement, Laureiro agreed to pay restitution for losses resulting from his conduct.

Assistant United States Attorney Francis P. Sempa prosecuted the case.

Contact:
Middle District of Pennsylvania
(717) 221-4482