Betsy Borges falsely represented to Wells Fargo that she could not make her mortgage payments
A New Jersey woman has been sentenced to 18 months in prison over her role in a mortgage fraud conspiracy that resulted in losses of more than $200,000, the US Attorney’s Office for the District of New Jersey announced.
Betsy Borges previously pleaded guilty before US District Judge Jerome Simandle to a charge of conspiracy to commit bank fraud. She was originally charged by complaint in May with Iraida Fuentes. Fuentes pleaded guilty in November and was sentenced to two years of probation in February.
In addition to the prison term, Borges was sentenced to three years of supervised release and ordered to pay restitution of $206,405.
The case stems from a property Borges purchased in December 2002. She failed to make mortgage payments to Wachovia and its successor, Wells Fargo. However, she rented the property out to tenants and collected rental income. Borges concealed that income and also falsely represented to Wells Fargo that she could not make her mortgage payments.
Later, Borges arranged with Wells Fargo for a short sale of the property to Fuentes. However, the two concealed their familial relationship from the bank. They also concealed the fact that Borges and another conspirator provided Fuentes the funds to purchase the property.
Fuentes bought the property in September 2012 at a price well below its actual value. B&B Properties, a company partly owned by Borges, then bought the property from Fuentes for $25,000. Eventually, Borges individually purchased the property for one dollar.
