A Texas homebuilder pleaded guilty to conspiracy to commit wire fraud in the U.S. District Court, Southern District of Texas on June 2.
Mario Alberto Rodriguez, 44, of Mission, Texas, admitted in his guilty plea that he participated in a scheme that used false warranty deeds to mislead lenders and real estate clients.
In the course of his crimes, Rodriguez would sell lots with proposed townhome construction without filing the appropriate warranty deeds. This left no record of the sale and allowed him to sell the same property multiple times. Rodriguez would then instruct co-conspirators to take out new loans on the previously sold properties in order to use the cash for other purposes.
Construction was never completed and victims were unable to take possession of the properties. Rodriguez ultimately defrauded victims out of more than $770,000 as a result of the scheme.
Chief U.S. District Judge Randy Crane is scheduled to impose sentencing on Aug. 12. Rodriguez currently faces up to 20 years in federal prison and a possible $250,000 maximum fine. He has been permitted to remain out of a jail on bond, pending the results of that sentencing hearing.
The FBI, the Texas Department of Insurance, the McAllen Police Department, and the Hidalgo County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Amanda McColgan prosecuted the case.