Florida Man Pleads Guilty To Concealing Fraud
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ignacio Huergo, 44, of Miami, Florida, pleaded guilty before U.S. District Judge Richard J. Arcara to concealing financial institution fraud. The charge carries a maximum penalty of three years in prison, and a $250,000 fine.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that Huergo worked for Frank Garcia who owned Federal Guaranty Mortgage Company (FGMC) and Guaranty Reality and Investment (GRI) as a bookkeeper and tax preparer between 2006 and 2008. During that time, the defendant became aware of Garcia’s business practices. Garcia used Huergo and another person as straw buyers as part of a vast mortgage fraud scheme. The defendant also knew that Garcia manipulated financial statements drafted by Huergo indicating that FGMC had a minimum net worth of over $1,000,000. These statements were sent to financial institutions. The defendant failed to notify anyone about Garcia’s fraud which resulted in a $24,000,000 loss to financial institutions, including M&T Bank which was defrauded out of $4,400,000.
Garcia has been convicted and is awaiting sentencing.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation.
Sentencing is scheduled for August 20, 2015 at 1:00 p.m. before Judge Arcara.