Prison sentences for three convicted of $50M mortgage fraud

The last three members convicted in a mortgage fraud scheme involving multiple lenders have received lengthy prison sentences from a federal judge in Miami.

The scheme was reportedly led by Miami resident Domencio Rabuffo, who was previously sentenced to 27 years in prison. The newest sentences handed down last week include 14 years for Rabuffo’s ex-wife Mae Rabuffo, plus 20 years each for Tampa resident Curtis Allen Davis and Raymond E. Olivier of Land O’Lakes, according to the South Florida Business Journal.

The charges alleged that the defendants and others conspired to defraud multiple lenders including Bank of America and Sun Trust Bank between 2003 and 2008. The Rabuffos used shell companies to acquire Hampton Springs, a residential development in Cashiers, North Carolina, according to the South Florida Business Journal. Straw borrowers were recruited to buy building lots and then obtain construction loans with falsified loan applications, the paper reported. [South Florida Business Journal] – Chris Guanche