Skip to main content

Miami man sentenced to 84-month prison term for $3.6 million foreclosure investment fraud

NationalMortgageProfessional.com
Aug 04, 2010

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Diego L. Siman of Miami, Fla., has been sentenced  to 84 months’ imprisonment by United States District Judge James I. Cohn, after having previously pled guilty to committing wire fraud. According to court documents, Siman sought potential investors interested in purchasing properties that were allegedly soon to be in foreclosure. Siman told these potential investors that he had inside information from a bank employee about these certain properties that would soon be foreclosed upon. According to court documents, Siman then told potential investors that for a fee, they could purchase a “reservation,” that would give the investor an opportunity to purchase the property at a discounted price as soon as it entered into foreclosure. The price quoted by Siman was substantially below market value, leading the potential investors to believe that the property could be resold for a profit. Siman fraudulently sold “reservations” to more than 15 individuals who invested more than $3.6 million believing that they had the option to purchase property that was soon to be foreclosed upon. In truth and fact, the defendant had no inside information regarding what properties would be foreclosed upon by a bank and never had the ability to purchase “reservations.” The properties for which the defendant sold “reservations” to purchase were not in foreclosure nor were they to be anticipated in foreclosure. "This is a reminder to all of us that we need to do our own homework and due diligence when investing in unconventional markets," said Gillies. "If something looks too good to be true, it probably is. The FBI is committed to investigating those who illegally enrich themselves by swindling investors.” For more information, visit http://miami.fbi.gov.  
Published
Aug 04, 2010
The Fed: Tapering Could Start In November

Open Market Committee also expects to raise federal funds rate a year earlier, in 2022

Regulation and Compliance
Sep 23, 2021
HUD, FHFA: Freddie Mac Can Buy Group Home-Backed Loans

Agencies issue rule clarification after a mortgage lender refused to lend to an individual renting to a group home

Regulation and Compliance
Sep 23, 2021
Fannie Mae Plans To Restart Credit Risk Transfers In 2021

Paused Since March 2020, New CRT Transactions To Begin In October

Regulation and Compliance
Sep 21, 2021
Biden Nominates McCargo To Lead Ginnie Mae

Currently Serves As Senior Advisor For Housing Finance At HUD

Regulation and Compliance
Sep 14, 2021
OCC Plans To Rescind 2020 CRA Rule

The OCC formally issued a proposal to rescind a controversial rule within the Community Reinvestment Act (CRA) that was published in June 2020.

Regulation and Compliance
Sep 10, 2021
CSBS Changes Servicer Liquidity Policy

CSBS And MBA Encourage States To Adopt Consistently

Regulation and Compliance
Sep 08, 2021