A former Florida resident has been sentenced to 20 years in federal prison for a scheme involving mortgage appraisal fraud that affected over $65 million in mortgages, according to federal authorities.
Armando Martinez, 51, of Plano, Texas, was sentenced by Chief U.S. District Judge Amos Mazzant III in the Eastern District of Texas, according to the United States Attorney’s Office for the Middle District of Florida.
Martinez has already plead guilty to bank fraud.
According to court filings, Martinez had his Florida appraiser license canceled but then assumed the identity and license number of a valid professional assessor.
According to prosecutors, Martinez then claimed to do onsite appraisals for dozens more Florida houses. Instead, he paid others to go to the properties and take photos for the appraisals he did.
According to investigators, Martinez used his computer to send the evaluations to lenders after fleeing the United States for the Dominican Republic.
According to authorities, financial institutions were duped into approving and funding home loans, as well as paying Martinez appraisal costs, based on bogus appraisals.
According to the U.S. Attorney’s Office, the scam caused more than $65 million in mortgage impairment or defects.
Prosecutors alleged that the mortgages were either guaranteed by the Federal Housing Administration or purchased and guaranteed by Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency Office of Inspector General and the United States Department of Housing and Urban Development Office of Inspector General both conducted investigations into the case.
Chris Poor, a Special Assistant United States Attorney, prosecuted the case.
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