Cape Coral police office and 4 others subject of FBI mortgage fraud investigation
Thursday, December 14, 2006 at 5:30PM The following press release was issued by the Cape Coral Police Department. At approximately 10:30 a.m. today the Federal Bureau of Investigations (F.B.I) took into custody Cape Coral Police Officer Alex Gonzalo at the Cape Coral Police Department on Federal charges related to Mortgage Fraud. Upon arrest today, Officer Gonzalo was put on administrative leave “with” pay, pending a pre-disciplinary hearing. Officer Gonzalo is 37 years old and has worked with the Cape Coral Police Department since 1999. He has worked as both a school resource officer and a patrol officer. All media inquiries regarding the details of the F.B.I. investigation against Officer Gonzalo will need to be directed to the Chief Assistant U.S. Attorney Douglas Molloy at 239-461-2200.
The Cape Coral Police Department learned that Officer Gonzalo was possibly involved in a mortgage fraud scheme involving federally guaranteed loans. At that time, the CCPD immediately contacted the FBI to conduct a thorough investigation. During the investigation, the Cape Coral Police Department cooperated fully with federal agents. Two weeks ago, Officer Gonzalo was informed of the investigation and placed on administrative duty.
Also arrested were Cape Coral residents Ronald D. Luczak, Lisa Luczak and Patricia Martin along with Sandra Mainardi of New Jersey. They are accused of participating in fraudulent real estate transactions in Cape Coral. They would locate real estate for sale by owner, allegedly inflate the price of the real estate, and obtain 100% financing for that inflated price. They were able to obtain more than $30 million in loans, which they allegedly used for extravagant trips, jewelry and their own personal use.
According to the complaint, Ronald Luczak operated the alleged scheme through two companines controlled by him, Cape Coral Equity and Development Group, Inc and Cape Coral Equity and Development Group, LLC which laterly traded from 1323 Lafayette Street, Suite B, Cape Coral as well as 130 South Del Prado Blvd, Unit 2C, Cape Coral. In June 2005 Luczak was released on license from prison where he had been serving a sentence for stock fraud committed in New York.
Mainardi is a mortgage broker who, according to the complaint, operates through Monarch Mortgage of New Jersey.
18 out of the 40 transactions involved were closed by Edison Title Services of 1323 Lafayette Street, Suite D, Cape Coral, an adjacent address to that Luczak’s companies were located.
The Editor - Ian Shuter - ACFE, DMS
On January 3, 2007 an indictment was filed against the 5 defendants and this further developed the details of the companies operated by Luczak. Not previously mentioned are:
Cape Coral Development Group, LC of 705 SE35th Terrace, Cape Coral
Cape Equities, LLC at the 1323 Lafayette address
Equity Solutions and Developing, Inc of 2107 Cleveland Avenue, Ft Myers
Please click here to read the indictment.
Ronald Luczak has been ordered to be held in custody pending his trial. The trial for all defendants is scheduled to start on March 5, 2007.
The Editor - Ian Shuter - ACFE, DMS
Ronald Luczak pleaded guilty to one count of wire fraud, one count of money laundering and one count of conducting prohibited monetary transactions. He faces a possible sentence of up to 50 years’ imprisonment, a fine of up to $500,000 and a period of supervised release of up to five (5) years, restitution to the victims of the offense, and forfeiture of any property constituting or derived from proceeds obtained as a result the violation.
Between September of 2005 and December 2006, Ronald Luczak, Lisa Luczak and their company, Cape Coral Equity and Development (CCEDG), obtained over $30 million from mortgages on at least 37 properties located in Cape Coral, Florida. The properties were purchased by 33 “straw buyers” that CCEDG recruited into the investment scheme.
CCEDG obtained these mortgages by making misrepresentations during the loan application process. These misrepresentations included inflated values of the properties, fraudulent statement of income, false statements concerning real estate/assets owned, statements that the intended use of the property was as a primary residence instead of as an investment property, false statement of occupations/employment, and failure to disclose that CCEDG would be responsible for making the mortgage payments.
The Luczaks and CCEDG received over $5.8 million from excess funds collected from the fraudulently obtained mortgages. Funds had been promised to the “straw buyers” to make their mortgage payments but because of excessive spending by the Luczaks, the mortgages for the initial straw purchases were paid by loan proceeds paid to subsequent “straw buyers” in a Ponzi type of scheme.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney David Haas.
The Editor - Ian Shuter - ACFE, DMS
Lisa Luczak has been sentenced today to three years and 10 months in federal prison for her role in a complex mortgage fraud scheme. Sentencing for her husband and co-defendant, Ronald Luczak (age 37), was postponed as a result of Mr. Luczak moving to withdraw his previously entered plea of guilty. Both had pled guilty on September 10, 2008.
According to court documents, between September 2005 and December 2006, the Luczaks and their company, Cape Coral Equity and Development (CCEDG), obtained more than $30 million from mortgages on at least 37 properties located in Cape Coral. The properties were purchased by 33 “straw buyers” that CCEDG recruited into the investment scheme. CCEDG obtained these mortgages by making misrepresentations during the loan application processes. These misrepresentations included inflation of property values, fraudulent incomes, false schedules of real estate/assets owned, falsely stating that intended use of the property was for primary residence instead of as an investment property, false occupations/employment, and failure to disclose that CCEDG would be responsible for the making the mortgage payments.
The Editor - Ian Shuter - ACFE, DMS
U.S. Attorney A. Brian Albritton announces that U.S. District John Steele today sentenced Ronald Luczak (age 37, of Cape Coral) to 22 years in federal prison for his role in a large mortgage fraud scheme. Luczak must also pay approximately $5.9 million in restitution to his victims. He had pleaded guilty to wire fraud and money laundering charges on September 10, 2008.
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