Mortgage Fraudster Pleads Guilty To Submitting Bogus Loan Applications In A $6 Million Dollar Mortgage Fraud Scheme

Mortgage fraudster Miguel LaRosa pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court. LaRosa pleaded to one count of conspiracy to commit wire fraud. The mortgage fraudster confessed to submitting bogus loan applications as part of large-scale mortgage fraud scheme. 

LaRosa conspired with others to fraudulently obtain mortgages using falsified documents from March 2011 through November 2012

LaRosa recruited straw buyers to purchase properties. He then created misleading bank accounts containing inflated dollar amounts.

LaRosa also prepared false appraisal reports and back-dated deeds. He also used unlicensed title agents to close transactions and disburse the mortgage proceeds.

The mortgage fraud scheme also resulted in more than $6 million in fraudulent loans. The scheme also exposed lenders and the Federal Housing Administration to more than $2 million in potential losses.

LaRosa is facing a maximum potential penalty of 30 years in prison and a $1 million fine. 

U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force and the U.S. Postal Inspection Service. Special agents of the U.S. Department of Housing and Urban Development and the Office of Inspector General,ofFederal Housing Finance Agency also assisted. Office of Inspector General, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Hudson County Prosecutor’s Office.

The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Acting Chief Barbara Ward of the Asset Forfeiture Unit in Newark.