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.
