Miami man pleads guilty to $3.6 million foreclosure investment fraud
By JohnKapado
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, announced today that Diego L. Siman, 37, of Miami, Florida, has pled guilty to wire fraud. Sentencing has been scheduled for July 30, 2010 before U.S. District Court Judge James I. Cohn. At sentencing, the defendant faces a maximum possible statutory term of imprisonment of twenty years.
According to court documents and statements made in court today, Siman sought potential investors interested in purchasing properties that were allegedly soon to be in foreclosure. Siman told these potential investors that he had inside information from a bank employee about these certain properties that would soon be foreclosed upon. According to court documents, Siman then told potential investors that for a fee, they could purchase a “reservation” that would give them an opportunity to purchase the property at a discounted price as soon as it entered into foreclosure. The price quoted by Siman was substantially below market value, leading the potential investors to believe that the property could be resold for a profit.
Siman fraudulently sold “reservations” to more than fifteen individuals who invested more than $3,600,000. In truth, however, the defendant had no inside information regarding what properties would be foreclosed and never had the ability to purchase “reservations.” The properties for which the defendant sold “reservations” to purchase were not in foreclosure nor were they anticipated to be in foreclosure.
U.S. Attorney Ferrer commended the investigative efforts of the FBI agents involved in this case. The prosecution is being handled by Assistant U.S. Attorney Jeffrey A. Neiman.
Related posts:
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- Atlanta man pleads guilty to $3.5 million invested fraud case
- Known Vienna, Austria fraudster pleads guilty to mortgage fraud conspiracy
- Franklin, TN financial advisor pleads guilty to wire fraud
- New Jersey woman pleads guilty to operating $45 million Ponzi scheme
15 individuals putting down $3.6 million yields an average of $240,000 each in “reservation fees”. That is an incredible number. The investors I deal with in Nashville would never release such funds prior to placing them in escrow with an attorney.
This is why he is so dangerous!!! He comes across very charming and portrays to be a family man to make his victims believe and trust him. He has been at scams for much longer than this.
BUT the Investors have to be the most smart people in the world to give that amount of money just like that. All this sounds to good to be true
Well when the father and daughter who are licensed real estate agents and own their own development company support him.
But then he stole from them too 5 years ago but they just fired him and lied to us…
It’s a family affair!!!!
[...] The defendant pleaded guilty to wire fraud charges and faces up to 20 years in prison at his upcoming sentencing. Sentencing is scheduled for July 30, Wire Update reported. [...]