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Woman sentenced for role in mortgage fraud scheme

Published 08/07/2012 12:00 AM
Updated 08/08/2012 12:01 AM

A 37-year-old New London woman was sentenced Tuesday to 14 months of home confinement for her role in preparing falsified loan documents while working for former New London mortgage broker Jose Guzman.

Rosa Garcia pleaded guilty in May 2010 to one count of conspiracy to commit mail fraud and wire fraud.

According to the U.S. attorney’s office, Garcia worked for Guzman, who operated a business that helped individuals obtain home mortgages. Guzman located real estate properties throughout New London County to be purchased by borrowers and falsified information on the loan applications, including information regarding income, assets, employment, rent history, as well as the borrowers’ intention to make the properties their primary residence.

In pleading guilty, Garcia admitted she assisted in the preparation and submission of the fraudulent closing documentation to lenders and confirmed the false information to lenders when they called to verify the information.

Guzman pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud. He awaits sentencing. Fifteen others, including Guzman, have been convicted on various charges related to this scheme. During the time Garcia worked for Guzman, the co-conspirators caused more than 200 mortgages to be funded and created more than $9 million in loses for lenders.

As part of her sentence, Garcia must pay about $1.7 million in restitution.

The case has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and David T. Huang.

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