Seven face charges over $50M mortgage fraud

Miami /
Jan.January 13, 2014 12:45 PM

Seven Floridians face allegations of running a $50 million mortgage fraud, according to an indictment filed in Miami.

The defendants are accused of running a fraud scheme tied to mountain-view property sales in North Carolina from 2003 to 2008, Daily Business Review reported. Lenders allegedly victimized by the scheme include Bank of America, Regions Bank and Wachovia Bank. Straw buyers were recruited to acquire properties in the Hampton Springs development in Cashiers, N.C.

Hampton Springs lead developer Domenico Rabuffo of Miami and Mae Rabuffo of Fort Lauderdale allegedly orchestrated the fraud scheme. The straw buyers filed fraudulent loan applications to complete the property purchases. SunTrust Bank loan officer Victor Miguel Vidal of Miami is accused of ensuring the loan applications were approved.

The 15-count indictment charges the seven defendants with wire and bank fraud conspiracy and other bank fraud-related crimes. Each count has a maximum sentence of 30 years in prison, a $1 million fine and restitution. [Daily Business Review]Eric Kalis


Related Articles

arrow_forward_ios
A photo illustration of Miami real estate agent Daniela Rendon (Getty, LinkedIn/Daniela Rendon, United States District Court)
Miami real estate agent charged with $381K PPP fraud
Miami real estate agent charged with $381K PPP fraud
(Photo-illustration by Paul Dilakian/The Real Deal)
“Recipe for fraud”: The alleged scam that rocked South Florida’s biggest HOA
“Recipe for fraud”: The alleged scam that rocked South Florida’s biggest HOA
From left: Attorney David Gersten and Judge Beatrice Butchko along with an aerial view of the Hammocks (Getty, LinkedIn/David Gersten, Twitter/Beatrice Butchko, Eleventh Judicial Circuit of Florida)
After the arrests: What’s next for Hammocks HOA?
After the arrests: What’s next for Hammocks HOA?
From left: LeBron James, Ken Griffin, Miami-Dade Mayor Daniella Levine Cava, Jeff Bezos, Vlad Doronin, and Stephen Ross (Getty)
Here’s what went down in South Florida real estate in 2022
Here’s what went down in South Florida real estate in 2022
Marglli Gallego with map of Hammocks (Eleventh Circuit Court, Getty)
South Florida’s biggest HOA’s leaders charged in massive fraud
South Florida’s biggest HOA’s leaders charged in massive fraud
(Photo Illustration by The Real Deal with Getty and Google Maps)
Inside Miami real estate scam targeting Venezuela’s elite
Inside Miami real estate scam targeting Venezuela’s elite
The Minorca condominium at 2030 Douglas Road in Coral Gables (iStock, CBRE, Illustration by Kevin Rebong for The Real Deal)
Ex-Venezuelan official tied to $1B fraud gets 4+ years, must forfeit Coral Gables condo
Ex-Venezuelan official tied to $1B fraud gets 4+ years, must forfeit Coral Gables condo
Convicted house-flippers now face rent fraud charges
Convicted house-flippers now face rent fraud charges
Convicted house-flippers now face rent fraud charges
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...