A fraudster who incorporated fake letters of credit (L/Cs) in a mortgage scam in the US has been sentenced to four years in jail.

William Mendez, described as the lead broker for the William E Mendez Team, pleaded guilty to wire fraud and money laundering in March. (DC World News, 28 March 2006).

Falsified documents

Mendez admitted to assisting more than 100 homebuyers, who he or his associates knew to be illegal aliens or otherwise unqualified to obtain loans, by preparing and completing loan applications containing false information.

The Colarado real estate agent used fraudulent documents to support the applications, including fake L/Cs as well as false information on income, identity, credit history and immigration status.

Restitution

In addition to a jail term of 49 months, Mendez was ordered by the court to pay restitution of almost US$1.3 million to the US Department of Housing and Urban Development.

As part of his plea agreement, Mendez also agreed not to work in the real estate business.

Awaiting sentence

Several others have also pleaded guilty in cases associated with the mortgage frauds, including real estate agent Rogaciano Caldera, who has been sentenced to 18 months in jail.

Mendez' sister, Claudia Mendez has pleaded guilty and is due to be sentenced later this month while Benedicta Gomez, who falsified tax returns, has also pleaded guilty and is due to be sentenced in August.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.