Plano, TX - Armando Martinez, 51, of Plano, Texas, was sentenced to 20 years in federal prison for bank fraud. The sentencing was carried out by Chief U.S. District Judge Amos Mazzant, III, of the United States District Court for the Eastern District of Texas. Martinez previously pleaded guilty to the charges.
U.S. Attorney Gregory W. Kehoe made the announcement regarding the case. According to court documents filed with the United States District Court for the Middle District of Florida, Martinez orchestrated and executed a bank fraud scheme directed at multiple financial institutions. He achieved this by taking over the identity and license number of a legitimate licensed appraiser. Martinez had his own Florida Appraiser license revoked prior to these actions.
Martinez purportedly conducted onsite appraisals for dozens of properties in Florida. In reality, he paid others to visit the properties and take pictures for appraisals that he completed himself. He then sent these appraisals to victim lenders from the Dominican Republic, where he had fled the United States. Using his computer, Martinez submitted the fraudulent documents to induce financial institutions to approve and fund mortgage loans and pay him appraisal fees.
As a result of this appraisal fraud, more than $65 million in mortgages are impaired or defective. These mortgages were either guaranteed by the Federal Housing Administration or purchased and guaranteed by Fannie Mae and Freddie Mac.
