Loan Officer Sentenced for Defrauding Lenders

Allison Tussey —  October 21, 2011 — Leave a comment

Jaco Huguet, 29, Arizona, a former loan officer who worked in the metropolitan-Phoenix area, was sentenced by U.S. District Court Judge Frank Zapata to 24 months in federal prison. As part of his sentence, Huguet was also ordered to pay over $500,000 in restitution. On July 1, 2011, Huguet previously pleaded guilty to one count of Conspiracy to Commit Wire Fraud and one count of Conspiracy to Commit Transactional Money Laundering.

Indicted on June 16, 2010, with nine other defendants, the case against Huguet demonstrated that while acting as a loan officer for an Arizona mortgage broker, Huguet took part in a conspiracy to submit mortgage loan applications on behalf of straw buyers that contained at least one or more of the following material false statements: false statements concerning the intent of the loan applicant to occupy the property as a primary residence; inflated income; false representations concerning employment; or failed to disclose that the loan applicant had recently purchased another property that contained a major liability, a mortgage.

After the title company received the proceeds from the fraudulently obtained loans, Huguet directed others to convert portions of these proceeds into cash. In Huguet‘s plea agreement, he admitted to his involvement in this scheme relating to the sale of nine properties that were purchased between January and February of 2007. Each of these properties went into foreclosure after the buyers failed to pay the mortgage payments. The estimated losses to the various financial institutions and/or the Federal Deposit Insurance Corporation (FDIC) relating to these transactions exceeded $1,000,000.

The sentencing occurred on October 11, 2011. The investigation was conducted by Criminal Investigation Division of the Internal Revenue Service and the U.S. Trustee’s Office. The prosecution was handled by Jonathan Granoff from the U.S. Attorney’s Office, District of Arizona.

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Allison Tussey

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