Feds indict 10 in $14 million mortgage scheme allegedly headed by McCloskey - Caribbean Business

Nov 3, 2009 Full story: www.caribbeanbusinesspr.com 14

Nov. 3, 2009: Puerto Rican singer Aldo Matta was among the suspects rounded up by federal authorities Tuesday morning in connection with a purported $14 million mortgage fraud scheme allegedly masterminded by local developer Joseph McCloskey Díaz.

McCloskey and Matta, who was picked up by federal agents in Juncos, were among 10 people indicted by a federal grand jury on conspiracy, mortgage fraud and money laundering counts in connection with the scheme centered on luxury residences in the exclusive Palmas del Mar area of Humacao.

Authorities had taken custody of nine of the 10 suspects by Tuesday morning.

The alleged scheme involved fraudulently inflating the value of homes during the appraisal process through a conspiracy between the buyers and seller McCloskey. They would then split the inflated portion of the appraised value between each other.

“Matta was one of the buyers in this scheme,” FBI spokesman Harry Rodríguez said.

The singer bought three properties for $4.2 million during a six-month period and got a $600,000 kickback from the developer, federal authorities allege.

Among the other suspects is Nahir Dominicci, the sister of TV reporter Carmen Dominicci, who allegedly served as a buyer and recruited other buyers in the scheme.

Federal authorities said the mastermind was McCloskey, the developer of the 12 luxury homes involved in the scheme in The Castles and Sunrise II developments at Palmas del Mar.

McCloskey, a prominent Puerto Rico developer and president of Swiss Chalet Inc., recently built the massive Gallery Plaza complex in the Condado with millions of dollars in Law 212 tax incentives from the local government. He also owns the neighboring DoubleTree Hotel.

The other suspects were identified as Angel Millán, Esteban Llanos, Jesús Suárez, Harold Mestey, Lorny Seda, Sarahid Gómez and Yhanira Alberti.

“These people were dedicated to a fraud scheme that took place between 2004 and 2006 where they stole $14 million,” FBI Special Agent in Charge Luis Fraticelli said.

U.S. Attorney Rosa Emilia Rodríguez said the scheme was built on McCloskey inflating the prices of the homes and then kicking back cash to the buyers who had taken bank loans to buy the homes.

[Upfront Yankee urges you to open link and read full story. It is loaded with newsworthy facts.] Full Story

Since: Dec 08

Location hidden

#1 Nov 3, 2009
Upfront Yankee urges you to open link and read full story. It is loaded with newsworthy facts. This news is really a shocker involving famous Puerto Ricans being indicted.

Since: Dec 08

Location hidden

#2 Nov 3, 2009
Here is an AP story on the mortgage fraud in Puerto Rico. It is also posted earlier on Puerto Rico News - Topix:

http://www.oregonlive.com/newsflash/index.ssf...

10 accused of mortgage fraud at PR coastal resort
11/3/2009, 2:19 p.m. PST
JILL LASTER
The Associated Press

(AP)— SAN JUAN, Puerto Rico - A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico, federal officials said Tuesday.
The suspects are accused of a scheme in which buyers allegedly took out loans using fake documents overstating the value of a dozen Spanish-style mansions in the ritzy Palmas del Mar coastal resort community in Humacao, in southeastern Puerto Rico.

A federal indictment charges developer Joseph McCloskey Diaz split the difference with the buyers, the loans went unpaid and the properties passed into foreclosure.

"Now the banks are stuck with these houses" that are not worth as much as the mortgages, FBI spokesman Harry Rodriguez said.

A federal grand jury indicted the group Friday on 33 counts including bank fraud, money laundering and submitting false statements to a financial institution.

Nine people were arrested Tuesday morning, and McCloskey flew in from South Florida and turned himself in, according to the U.S. attorney's office.

All 10 pleaded not guilty, said Lymarie Llovet, spokeswoman for the U.S. attorney's office. They would face up to 30 years in prison and $1 million in fines if convicted.

The suspects include former salsa singer Miguel A. Matta Ponce de Leon-better known as Aldo Matta-who allegedly submitted false information to obtain loans to buy three properties worth $4.2 million from McCloskey, according to the indictment.

Matta's attorney could not be immediately reached for comment.

Authorities said the alleged scheme ran from 2004 to 2006 and involved properties ranging in value from $700,000 to $3.2 million.

Most of the homes involved are now in foreclosure proceedings.

"Mortgage fraud isn't a victimless crime," said Gilbert Garza, special agent in charge of Miami's Internal Revenue Service office. "It threatens the financial health of our communities and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property."

© 2009 Associated Press. All Rights Reserved.
Jorge

San Juan, Puerto Rico

#3 Nov 3, 2009
Upfront Yankee wrote:
Upfront Yankee urges you to open link and read full story. It is loaded with newsworthy facts. This news is really a shocker involving famous Puerto Ricans being indicted.
One of the indicted was the guy who smacked Carlos Romero in the eye.

How do you like that?
Jorge

San Juan, Puerto Rico

#4 Nov 3, 2009
Upfront Yankee wrote:
Here is an AP story on the mortgage fraud in Puerto Rico. It is also posted earlier on Puerto Rico News - Topix:
http://www.oregonlive.com/newsflash/index.ssf...
10 accused of mortgage fraud at PR coastal resort
11/3/2009, 2:19 p.m. PST
JILL LASTER
The Associated Press
(AP)— SAN JUAN, Puerto Rico - A developer and nine other people, including a former salsa singer, have been charged in an alleged $14 million mortgage fraud in Puerto Rico, federal officials said Tuesday.
The suspects are accused of a scheme in which buyers allegedly took out loans using fake documents overstating the value of a dozen Spanish-style mansions in the ritzy Palmas del Mar coastal resort community in Humacao, in southeastern Puerto Rico.
A federal indictment charges developer Joseph McCloskey Diaz split the difference with the buyers, the loans went unpaid and the properties passed into foreclosure.
"Now the banks are stuck with these houses" that are not worth as much as the mortgages, FBI spokesman Harry Rodriguez said.
A federal grand jury indicted the group Friday on 33 counts including bank fraud, money laundering and submitting false statements to a financial institution.
Nine people were arrested Tuesday morning, and McCloskey flew in from South Florida and turned himself in, according to the U.S. attorney's office.
All 10 pleaded not guilty, said Lymarie Llovet, spokeswoman for the U.S. attorney's office. They would face up to 30 years in prison and $1 million in fines if convicted.
The suspects include former salsa singer Miguel A. Matta Ponce de Leon-better known as Aldo Matta-who allegedly submitted false information to obtain loans to buy three properties worth $4.2 million from McCloskey, according to the indictment.
Matta's attorney could not be immediately reached for comment.
Authorities said the alleged scheme ran from 2004 to 2006 and involved properties ranging in value from $700,000 to $3.2 million.
Most of the homes involved are now in foreclosure proceedings.
"Mortgage fraud isn't a victimless crime," said Gilbert Garza, special agent in charge of Miami's Internal Revenue Service office. "It threatens the financial health of our communities and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property."
© 2009 Associated Press. All Rights Reserved.
A number of Puerto Rican banks blew the whistle on Joe Mckloskey.
NOT REALLY

Philadelphia, PA

#5 Nov 3, 2009
Jorge wrote:
<quoted text>
One of the indicted was the guy who smacked Carlos Romero in the eye.
How do you like that?
Serves them right. They should make an example out of them.
Jorge

San Juan, Puerto Rico

#6 Nov 3, 2009
NOT REALLY wrote:
<quoted text>Serves them right. They should make an example out of them.
Are you related to someone in Canada, who has your same last name?
NOT REALLY

Philadelphia, PA

#7 Nov 3, 2009
Jorge wrote:
<quoted text>
Are you related to someone in Canada, who has your same last name?
Ai, Jorge,?Cuantas veces te tengo que explicar el asunto de las computadoras? Ahora mismo estoy trabajando tarde y estoy utilizando la computadora del trabajo.
NOT REALLY

Philadelphia, PA

#8 Nov 3, 2009
La proxima vez que voy de vacaciones en PR voy a ir a tu casa y ensenarte la "contraya" computadora esta. LOL. Olvidate de eso, voy pa' comer comida buena.
Jorge

San Juan, Puerto Rico

#9 Nov 3, 2009
NOT REALLY wrote:
<quoted text>
Ai, Jorge,?Cuantas veces te tengo que explicar el asunto de las computadoras? Ahora mismo estoy trabajando tarde y estoy utilizando la computadora del trabajo.
Vete pa' tu casa....te estoy gufeando. Ya estás fundi'o. LOL
NOT REALLY

Philadelphia, PA

#10 Nov 3, 2009
Jorge wrote:
<quoted text>
Vete pa' tu casa....te estoy gufeando. Ya estás fundi'o. LOL
Ok, voy a empezar caminado hacia Canada, oops, se me cayo el compas,!caramba!
NOT REALLY

Philadelphia, PA

#11 Nov 3, 2009
caminar
Jorge

San Juan, Puerto Rico

#12 Nov 3, 2009
NOT REALLY wrote:
caminar
¿Hace frío?

El frío abre el apetito.

Yo le achaco mis libritas al frío, no a mis mandíbulas...LOL
NOT REALLY

Bear, DE

#13 Nov 3, 2009
Jorge wrote:
<quoted text>
¿Hace frío?
El frío abre el apetito.
Yo le achaco mis libritas al frío, no a mis mandíbulas...LOL
Pero que gracioso eres. No esta tan frio, creo que ahora es como 50 grados. Hace poco que llegue a la casa.?Te has dado cuenta?
NOT REALLY

Bear, DE

#14 Nov 3, 2009
Jorge, gracias por usar palabras que no conozco. Me paso el tiempo usando el diccionario. Deseo aprender bien la idioma espanola.

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