The Mayor presented three cases. The first case was a scheme involving a Rafael Diaz who defrauded the lender by enlisting the help of a straw buyer, loan processor and others for the fraudulent purchase of  a property located in Tavernier, Florida. The property was closing for $800,000 with fraudulent documents listing it for $1.8 million. Neither the seller nor the lender were aware of the extra million Diaz and his team were trying to steal.

The second case involves repeat offender Mariana Navarrete. She sold an unsuspecting buyer a residence - twice.  “Twice” because two mortgages were obtained by the victim in the amount of $415,000 each.  Then later, a fraudulent Quit Claim Deed was filed taking ownership of the property from the victim, even though he is still responsible for the mortgage. The grantee on the Quit Claim Deed is a company associated with Navarrete.

The last case involves Richard Jacob Gutierrez who obtained a $260,000 mortgage from a private lender on a home that didn’t even exist.  Mr. Gutierrez proclaimed to be the owner of the property used as collateral for the loan.  The investigation revealed that the loan was fraudulently obtained as the property did not physically exist.

Mortgage Fraud Task Force Chair and Miami-Dade Police Department Chief Counsel Glenn Theobald said, “Prosecuting the parties involved in these schemes is more effective and efficient now with the passage of the new mortgage fraud law that went into effect on October 1.”

The Mortgage Fraud Task Force, whose members were instrumental in passing the first legislation, continues to work on new state legislation with members such as Senator Gwen Margolis and State Representative Carlos Lopez-Cantera.  Proposed legislation that provides stricter penalties for mortgage fraud perpetrators and the ability for just valuation in appraisals, which removes inflated property values in select areas, is on its way to Tallahassee.

Other significant strides being made by the Task Force’s includes the first Code of Conduct Model for real estate professionals and others involved in real estate transactions – from realtors to lenders to banks and surveyors.

“The industry now has higher standards,” said Mayor Alvarez about the model, which serves a manual for ethical transactions.  “Task Force members are working toward the adoption of this model throughout the entire industry.”

“In the County, we are also holding ourselves to a higher standard with additional resources going to the Economic Crimes Bureau and new processes being implemented by the Clerk of the Courts Office,” added Mayor Alvarez.

Every complaint is being taken very seriously by our Economic Crimes Bureau. Anyone who suspects deceitful mortgage practices is encouraged to file a Complaint Form online form at www.miamidade.gov/mayor or contact Miami-Dade County’s Economic Crime Bureau at (305) 994-1000.