Denver Agent Helps Illegal Immigrants Defraud HUD

A Denver real estate agent pleaded guilty to assisting helping unqualified home buyers get federally insured mortgages. The agent was sentenced to more than four years in prison and ordered to repay $1.2 million the government paid to lenders when the unqualified borrowers defaulted on their home loans.

Government Prosecutors say William E. Mendez helped more than 100 people fill out fraudulent Housing and Urban Development loan applications. Most of the unqualified applicants were found to be illegal immigrants.

Five other defendants who worked for Mendez have been sentenced in the case and were ordered to pay from $36,000 to $81,000 in restitution.

Source: Associated Press (06/08/2006)