In the following press release Michael K. Loucks, Acting United States for the District of Massachusetts announced that four Massachusetts residents were charged with fraud yesterday by a federal Grand Jury in connection with a scheme to obtain real estate properties and mortgages on those properties under false pretenses.

The US Attorney was joined by Steven D. Ricciardi, Special Agent in Charge of U.S. Secret Service in the announcement that Steven Soto, age 24, currently in federal custody awaiting trial on unrelated federal fraud [ID Theft/Motor Vehicle] charges, Pedro Soto, age 44, of Springfield, MA, Carmen Soto, age 44, of Springfield, MA, and Kimberly Litwin, age 52, of Lynn, MA, were charged in a thirteen-count Indictment with mail fraud and aggravated identity theft.
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Additional Materials

• Press Release
• Indictment

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The Indictment alleges that in 2006 and 2007, the defendants engaged in a real estate financing fraud scheme that involved filing false and fraudulent documents with the Registry of Deeds. The defendants are charged with using the identities of other persons to obtain mortgage loans under false pretenses and submitting false and fraudulent mortgage loan applications and related documents to lending institutions. The defendants are also charged with diverting loan proceeds for their personal benefit.

According to the Indictment, the objective of the fraud scheme was obtain mortgage financing by giving lenders false information regarding the borrower’s intent to occupy the premises and the borrower’s employment, income, assets, and liabilities. After obtaining the loans, the Indictment alleges, the defendants and the straw buyers recruited by the defendants failed to make payments and the properties went into foreclosure.

[Editor note: The indictment also states that the Soto’s ran a company called Paradise Real Estate in Lynn, MA which identified and brokered property sales.

The properties mentioned in the Indictment are:
242 Main St, Springfield, MA
55 Lawrence St, Unit 1, Salem, MA
55 Lawrence St, Unit 2, Salem, MA
55 Lawrence St, Unit 3, Salem, MA
399 Orange St, Springfield, MA
21 Dudley St, Unit 1, Haverhill, MA
21 Dudley St, Unit 2, Haverhill, MA. ]

If convicted of mail fraud, each defendant faces on each count a maximum sentence of 20 years in prison, a fine of $250,000, and restitution to the victims of the fraud. If convicted of aggravated identity theft, the defendants face a mandatory additional sentence of two years in prison.

The case was investigated by U.S. Secret Service, in cooperation with the Massachusetts State Police and the Lynn Police Department. The case is being prosecuted by Assistant U.S. Attorney John A. Capin of Loucks’ Criminal Division.

The details contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.