Woman Sentenced To 37 Months In New London County Mortgage Fraud

The U.S. District Court in Hartford has sentenced a 28-year-old New London woman to 37 months in prison for her role in a mortgage fraud ring in eastern Connecticut.

Isaura Guzman will also serve three years of supervised release under the sentence by U.S. District Judge Alfred V. Covello. She must also pay $7,811,695.44 in restitution. Guzman pleaded guilty on June 14, 2010, to one count of conspiracy to commit wire fraud and mail fraud.

According to David B. Fein, U.S. Attorney for the District of Connecticut, the mortgage fraud ran from about 2004 to 2007. Guzman and her father, Jose Guzman, used mortgage brokerage, property management, and home improvement companies to have individuals buy properties, primarily residences, in New London County. The purchases were made by obtaining funds from mortgage companies and originators via false information on the borrowers' assets, income, employment, and other details submitted on applications. These individuals were then compensated for their role in the scheme.

Fein said Guzman first acted as an assistant to her father and later became a licensed real estate agent for Elizabeth Athan Realty. She bought and/or sold at least four houses and recruited at least three people to act as borrowers.

Prosecutors say over 200 fraudulent mortgages were funded in the scheme, with a loss of over $9 million to lenders.

Fifteen other people have pleaded guilty to charges related to the fraud, including Jose Guzman. He has not yet been sentenced.

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