Miami federal charges allege real estate scam resulted in $7 million in bank losses

A 29-year-old Miami man is facing criminal charges in connection with a South Florida mortgage fraud scheme that reportedly bilked banks of more than $7 million, the South Florida Business Journal reported.

Our Miami criminal defense lawyers continue to report on the large number of mortgage fraud charges being filed since the real estate market collapsed. Banks that made highly questionable loans are now seeking criminal charges against customers who may have been less than honest about income or other factors disclosed on loan applications. In some of these cases, clients who have been victimized by the economic downturn are now facing criminal charges.

In this case, the defendant is facing federal criminal charges in Miami, including conspiracy to commit bank fraud and making false statements on loan applications to Bank of American and JP Morgan Chase.

The charges were filed by the U.S. Attorney’s Office for the Southern District of Florida. The properties involved are in Miami Beach, Lake Worth and Wellington.

The government accuses the defendant of conspiring with others to submit falsified loan applications and using straw buyers to take part in the scheme. Each count carries a penalty of up to 30 years in prison if convicted. Authorities say he submitted loan applications that contained false information about an applicant’s income, assets and intentions to live in the homes.

The alleged fraud resulted in more than $7 million of losses at several banks.