Three Texas women were charged in connection with a mortgage fraud scheme in the Eastern District of Texas.
According to U.S. Attorney Damien Diggs, Nicole Espinosa, also known as Short Sale Queen, 35, of Plano; Stephanie Smith, also known as Stephanie Parks, 44, of Midlothian; and Selena Baltazar-Hill, 28, of Dallas, were indicted by a federal grand jury and charged with conspiracy to commit wire fraud affecting a financial institution and conspiracy to submit false statements to a federally insured financial institution.
According to information presented in court, beginning in 2017, the three women, along with others, allegedly operated a mortgage fraud scheme using companies including Short Sale Queen, LLC. They found properties in the pre-foreclosure short sale process and approached the homeowners about listing the properties for sale. After signing a listing agreement with the homeowners, the defendants submitted fraudulent documents to financial institutions and mortgage companies to try to freeze the foreclosure process, including falsified purchase agreements from purported “buyers” and altered “proof of funds” letters showing the “buyers” had the means to purchase the property. Based on the fraudulent documents, the financial institutions halted foreclosure proceedings and waived fees collection, unknowingly giving the defendants time to either find a real buyer or cancel the deal when they could not locate one.
The three are alleged to have fraudulently submitted documents for at least 88 properties totaling over $8 million in sales, obtained at least $390,000 in commissions and processing fees, and caused at least $2.5 million in losses to the financial institutions.
If convicted, the defendants each face up to 30 years in federal prison.
This case is being investigated by the Department of Housing and Urban Development, Federal Housing Finance Agency, and Department of Veterans Affairs.