Home builder admits to $770,000 real estate fraud scheme

McALLEN, Texas – A 44-year-old Mission resident has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Nicholas J. Ganjei.

Mario Alberto Rodriguez admitted he participated in a scheme that used false warranty deeds to mislead lenders and real estate clients.

Rodriguez would defraud homebuyers and short-term lenders by selling a lot with proposed townhome construction without filing the warranty deed. This left no record of the sale and allowed him to sell the same property multiple times. Rodriguez would then instruct co-conspirators to take out new loans on the previously sold properties in order to use the cash for other purposes.

Rodriguez defrauded victims out of more than $770,000 as a result of the scheme. Construction was never completed and victims were unable to take possession of the properties.

Chief U.S. District Judge Randy Crane will impose sentencing Aug. 12. At that time, Rodriguez faces up to 20 years in federal prison and a possible $250,000 maximum fine.

He was permitted to remain on bond pending that hearing.

FBI, Texas Department of Insurance, McAllen Police Department, and the Hidalgo County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Amanda McColgan prosecuted the case.