Man Sentenced for Property Flipping Scam

Allison Tussey —  November 12, 2010 — 1 Comment

Edgar Corona, 32, Springfield, Massachusetts, pleaded guilty before U.S. District Judge Michael A. Ponsor to wire fraud and money laundering. Judge Ponsor sentenced the defendant to time served and three years of supervised release and advised the defendant that it was likely that he would be deported.

At the plea hearing, the prosecutor told the court that had the case proceeded to trial, the government’s evidence would have proven that from 1998 through 2002, Corona participated in a multi-million-dollar mortgage fraud scheme involving the sale of distressed properties at inflated prices. Corona served as a “runner,” who recruited prospective buyers for the land flippers. Twelve other individuals were previously convicted in the same scheme.

United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service Criminal Investigations, Boston Field Division; and Richard DesLauries, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, announced the guilty plea.

The case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. It was being prosecuted by Assistant U.S. Attorney Karen Goodwin of Ortiz’s Springfield Branch Office.

Mortgage fraud is a key focus of the Department of Justice. The Department of Justice alongside its federal, state, and local partners is committed to investigating and prosecuting significant financial crimes. The Department is committed to combating discrimination and fraud in the lending and financial markets, and recovering proceeds for victims of financial crimes.

 

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Allison Tussey

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One response to Man Sentenced for Property Flipping Scam

  1. “Recruited prospective Buyers for land flippers”? How is this money laundering and wire fraud? How is the sale of distressed properties mortgage fraud? How would someone “inflate” the price of a home? Flip back to an old Economics text, price is determined by supply and demand.

    I don’t know the details of this specific case but it sounds like another example ot the power and unlimited financial resources of the government being used to intimidate a settlement. It would be very expensive to defend this action individually.

    I don’t doubt that there is real fraud out there but aggressively negotiating the acquisition of a property and then selling it to a willing and knowledgeable buyer for a profit is not fraud, it is entrepreneurialship.

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