The Home Equity Theft Reporter: Florida Federal Jury Convicts Six Straw Buyers In Alleged Scam Involving $15M+ In Fraudulently Obtained Loans; $5M+ In Lender Losses

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Six of the defendants — Larry Smith, Maria Candida Capa, Margarita Gaviola, Jessica Refuerzo, Julita Whittingham and Edgardo Orcino — were already charged in a criminal complaint with conspiracy to commit grand theft, grand theft and conspiracy to do a deceitful practice while acting as a mortgage foreclosure consultant.

A second indictment, returned March 13, 2008, charges Charles Head and six other defendants, including three not charged in the first indictment, with operating an additional "equity-stripping" scheme that netted approximately $5.9 million in stolen equity from 68 homeowners nationwide. That indictment alleges that Charles Head revised the original scheme by recruiting strangers via the Internet to act as straw buyers.

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