Two persons have pleaded guilty has pleaded guilty in U.S. District Court in Fresno to conspiracy to commit bank fraud, announced U.S. Attorney Benjamin Wagner.
Minerva Sanchez, 48, of Fremont, was the real estate agent for the seller, Agustin Simon, 52.
Simon’s home was located in Patterson, California. According to court documents, he and Sanchez conspired to effect a short sale of his home to Sanchez’ son, who would act as a straw buyer and provided Simon with the hardship letter explaining why he was unable to afford his mortgage payments. Sanchez would later regain title to the property but at a reduced mortgage as a result of the short sale.
As part of her plea agreement, Minerva Sanchez admitted that the lenders lost over $316,000 from her criminal conduct.
Note: most, if not all, lending institutions require short sales to be arm’s-length, meaning that the parties to the transaction may not be known to each other. This is to prevent schemes such as resulted in this prosecution.
You can learn more about short sale fraud by reading my book “How to Commit Short Sale Fraud . . . and Get Away with It“.
Read the original article in the Central Valley Business Times.
Note: Minerva Sanchez was sentenced to 21 months in prison on February 17, 2015, according to the Modesto Bee.