Former loan officer, Sergio Martinez, 35, of Tucson has been indicted by a federal grand jury with bank fraud, false statement to influence a financial institution, wire fraud, and conspiracy to commit wire fraud. Martinez was arrested on the indictment last month in Buffalo, N.Y.
Martinez allegedly participated in a scheme to defraud a financial institution in order to obtain financing. Although Martinez was not the listed loan applicant, he allegedly caused to be submitted a loan application that contained material false statements including: (1) a false representation that the loan applicant was self-employed; (2) a falsely inflated income; and (3) a false representation that no part of the down payment was borrowed.
The indictment further alleges that another document submitted to the lender falsely represented that the borrower would provide $359,982.38 in cash to close the deal when, in fact, the borrower and Martinez received a separate loan that was used to provide most of that cash. These documents were allegedly provided to obtain $1.4 million in loans to purchase a $1.75 million home. After the financing was used to purchase the property, the home went into foreclosure due to lack of payments. The foreclosure resulted in a significant loss to the lender.
Martinez, if convicted for bank fraud, false statement to influence a financial institution, wire fraud, and conspiracy to commit wire fraud faces a maximum penalty of 30 years in prison, a $1,000,000 fine, or both.
The investigation preceding the indictment was conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.