Florida man pleads guilty to mortgage auditing scheme

A 53-year-old Florida man whose company claimed to provide mortgage auditing services recently pleaded guilty in federal court to conspiracy to commit wire fraud.

Brian Roy Lozito, a resident of Orange Park, faces a potential maximum sentence of 20 years in federal prison, and he will be required to pay restitution to the victims he defrauded, according to a U.S. Department of Justice press release. A sentencing date has not been set.

Court documents indicate that Lozito was the owner and manager of American Investigative Services, which claimed to provide mortgage auditing services to consumers in exchange for a fee. 

Lozito and his co-conspirators used mailings and telephone calls to solicit customers nationwide. During these solicitations, they made false and fraudulent representations to consumers, including promises of “forensic audits” on mortgage documents to uncover potential deficiencies. 

In addition, Lozito claimed that AIS would obtain quitclaim deeds and other remedies to relieve mortgage holders of their debts and give them ownership of their properties free and clear. 

If AIS failed to deliver on its promises, Lozito assured customers that they would receive a refund. However, in reality, AIS did not provide the services paid for by consumers and did not issue any refunds. Instead, funds collected from consumers were directed to bank accounts controlled by Lozito, who used the money to maintain the operation of AIS and for personal expenses.

Lozito was arraigned on the indictment on Jan. 11, 2021, and initially released on bond. The court revoked his bond on Nov. 18, 2022, and subsequently ordered him detained.

Lozito is hardly the only Florida resident to be involved in fraud-related real estate transactions.

In April, a Miami real estate agent who was charged with fraud and money laundering tied to pandemic relief funds she allegedly used to lease her white Bentley Bentayga, rent a luxury apartment and more pleaded guilty to one count of wire fraud. 

Daniela Rendon, who now hangs her license with Doral-based Smart Miami Realty, was indicted in February on two counts of money laundering, seven counts of wire fraud and one count of aggravated identity theft. After pleading guilty this week to wire fraud, the U.S. Attorney’s Office is seeking to dismiss all other charges.