Watch CBS News

Mortgage Fraud Chief Gets 27 Years In Prison

MIAMI (CBSMiami/AP) — After a group of mortgage frauds schemed several banks out of close to $50 million, the man who lead it all is facing 27 years thanks to a Miami federal judge.

U.S. District Judge K. Michael Moore imposed the sentence last week on 78-year-old Domenico Rabuffo. Three other people convicted in Rabuffo's trial face sentencing on Oct. 30, and three others previously pleaded guilty and assisted federal prosecutors.

Trial evidence showed the group defrauded several banks out of lot purchase lands and building loans using fraudulent documents, straw buyers and inflated income estimates. The fraud revolved around a development known as Hampton Springs in Cashiers, North Carolina.

One defendant, a loan officer at SunTrust Bank in Miami, sponsored several fraudulent loan applications for lots in the development.

RELATED CONTENT:

(TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

 

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.