Summary: An
attorney signed off on the fake documents, and the lenders—believing
everything was legitimate—made the loans. The applications also inflated
the value of the properties. If a home was appraised at $400,000, for
example, the bogus loan application might list the value at $500,000.
Puentes pocketed the extra money and used it to pay his accomplices. He
then paid the mortgage for a number of months, until he could flip the
property for a further profit—or sometimes he rented it to generate more
income. But then he stopped paying. After taking his ill-gotten profit,
Puentes simply walked away from the mortgage, leaving the lender with a
toxic asset. Meanwhile, he was living large, taking trips to Paris and
buying a Ferrari Read More
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