A grand jury in Denver, Colorado indicted Luis Vagle, former head First Financial Corp., and Lawrence M. Rosenberg, on charges they violated the Colorado Organized Crime Control Act in an alleged mortgage fraud scheme that resulted in foreclosures. Losses to home sellers and lenders are estimated at $1 million.
According to authorities, Vagle or others would tell prospective buyers he would help them qualify for mortgage loans and make the mortgage payments. In some cases, Vagle or others, including Rosenberg, submitted fraudulent loan applications including false checks, W-2’s and VOEs without the knowledge of the buyers. Vagle would fail to make the mortgage payments.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.