Man Admits Using False Loan Applications to Obtain Mortgages

Allison Tussey —  July 16, 2013 — 1 Comment

Edgar Galdamez, 36, Rockville, Maryland, pleaded guilty to wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $515,000.

According to his plea, from at least September 2006 through May 2007, Galdamez and others contacted individuals who wished to purchase homes as investment properties. Galdamez and others then intentionally prepared and submitted false loan applications in the buyers’ names to the lending institution to qualify these individuals for loans that they otherwise were unqualified to secure.

For instance, they typically inflated the buyer’s income and omitted liabilities. They also falsely stated on loan applications that the purpose of the property was to be the borrowers’ primary residence in order to receive a lower interest rate. Galdamez knew that the property was intended to be used as an investment property. These residential mortgages were destined to fail because the borrowers did not have the income or assets to make the necessary mortgage payments. Galdamez and others profited from these fraudulent transactions by collecting origination fees, commissions and broker’s fees from each loan that closed.

As a result of the fraud scheme, the lender lost at least $515,500. Galdamez will be required to forfeit at least $515,500 and pay restitution.

Galdamez faces a maximum penalty of 30 years in prison and a $1 million fine. U.S. District Judge Peter J. Messitte scheduled sentencing for November 5, 2013 at 9:30 a.m.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

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One response to Man Admits Using False Loan Applications to Obtain Mortgages

  1. who was the mortgage Lender that got bilked?

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