September 30, 2016
Fraud Friday — Bogus $2.3 Million SBA Loan Results in 6 Colorado Family Member Fraud Convictions
By Bob Coleman
Editor, Fraud Friday
A Colorado family fraud affair has come to an end.
Jose Ricardo Sarabia-Martinez has been found guilty of bank fraud in obtaining $5 million of SBA and mortgage loans. His wife, brothers and parents previously pled guilty.
“These individuals engaged in a fraudulent scheme to gain access to an SBA guaranteed loan program and further their criminal enterprise,” says Inspector General Peggy E. Gustafson. “SBA’s guaranteed loan programs are only eligible to persons meeting specific character standards to guard against those driven by greed or other criminal motives. I want to thank the Colorado Office of the Attorney General and our law enforcement partners for their cooperation in bringing these individuals to justice.”
Jose was found guilty of:
(1) Violating the Colorado Organized Crime Control Act
(2) Forgery involving SBA, a California bank, and the State of Colorado
(3) Criminal impersonation
(4) Theft of funds from various lenders.
Jose obtained a $2.32 million SBA-guaranteed loan to refinance his office building and other existing debt.
To obtain the loan, he concealed his extensive criminal history and the fact that he was currently on probation.
He falsified documents related to his debts.
The scheme primarily centered on mortgage fraud including manipulating multiple real estate transactions through fraudulent statements, material omissions, false identification and notary commissions, and “straw buyers” to buy and sell real estate.
“This case and other mortgage fraud cases investigated by CBI shows the considerable damage groups have caused in the mortgage and banking industry and in our communities where these foreclosures have occurred and individuals have had their credit destroyed,” says Colorado Bureau of Investigations Director Ron Sloan. “We are committed to investigating these far-reaching crimes to reduce the impact on those targeted by these complex schemes.”
Investigators found more than 100 boxes with paperwork of suspicious transactions.