Ignacio Huergo, 44, Miami, Florida, was sentenced to 2 years’ probation, with six months to be served on home confinement, for his conviction for concealing massive financial institution fraud. Huergo was also ordered to pay restitution in the amount of $736,254.25 to M&T Bank.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that Huergo worked for the companies of Frank Garcia, Federal Guaranty Mortgage Company (FGMC) and Guaranty Realty and Investment (GRI) as a bookkeeper and tax preparer between 2006 and 2008. During that time, Huergo became aware of the business practices of Garcia, and knew that Garcia used him and another person as straw buyers as part of this vast mortgage fraud scheme. The defendant also knew that Garcia manipulated financial statements that Huergo drafted, which were sent to financial institutions, indicating that FGMC had a minimum net worth of over $1,000,000. Knowing about the fraud and the two ways it was perpetrated, Huergo failed to notify the authorities of Garcia’s fraud, resulting in a $24 million dollar loss to various financial institutions. One such institution, M & T Bank, was defrauded out of approximately $4.4 million.
Garcia previously pleaded guilty to his part in this $24 million financial institution fraud scheme. Garcia is scheduled to be sentenced on August 24, 2015.
The sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation under the direction of Special Agent-in-Charge, Brian P. Boetig.