U.S. Attorney's Office
Courtesy/U.S. Attorney's Office
LMTonline
Cesar G. Rodriguez, LAREDO MORNING TIMES
A former Laredo sales manager has been sentenced to prison for a fraud conspiracy that cost the Department of Housing and Urban Development $1 million in losses, authorities said.
Edmundo de la Torre was involved in a complex mortgage fraud scheme. On April 19, he pled guilty to orchestrating a mortgage fraud scheme in which he altered hundreds of documents to get otherwise unqualified buyers’ approval for government-backed mortgages.
On Nov. 28, U.S. District Judge Marina Garcia Marmalejo sentenced de la Torre to 36 months in federal prison followed by three years of supervised release. He was also ordered to pay $1.17 million in restitution.
“In handing down the sentence, Judge Marmolejo noted the sophistication and persistence of De La Torre’s crime and remarked on the profound effects it has on potential first-time and low-income homebuyers seeking homes, and instead ending up entangled in legal and finances issues,” the U.S. Attorney’s Office said.
De la Torre remains out on bond. He will voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Housing and Urban Development - Office of Inspector General conducted the investigation with assistance from the FBI. Assistant U.S. Attorney Thomas Carter prosecuted the case.
De la Torre used to be a sales manager for WestWind Homes. He used his position to attempt to get potential customers approved for Department of Housing and Urban Development (HUD)-backed mortgages, according to court documents.
De la Torre forged various documents, including financial statements, bank statements, paycheck stubs and letters of reference for at least 38 otherwise unqualified homebuyers. He then submitted these fake and forged documents to a Laredo area bank on behalf of the potential homebuyers, authorities said.
“He admitted he was receiving a commission for each sale and personally profiting over $200,000 from the scheme. In addition, more than three dozen known loans in this scheme ultimately defaulted or had to be restructured, costing HUD roughly $971,310.10 at the time of his plea in April,” the U.S. Attorney’s Office said.