Banks Doled Out Millions in Loans to Fraudsters Who Simply Made Stuff Up, Feds Say

Most of Eddie Contreraz's clients either didn't work or didn't earn enough money to qualify for loans, authorities say.But that didn't stop them from getting bank loans, credit cards and lines of credit with his help. Contreraz did so by studying lending patterns at various banks to find out what information was required, according to federal prosecutors in Dallas. Then he had his customers submit faked documents like pay stubs, tax records and utility bills to qualify for the loans, prosecutors say.Contreraz, 48, of Frisco, created "consistently high quality fraudulent documents" that tricked lenders into thinking they were valid, according to plea documents in the case. More than 95 percent of his clients agreed to submit them, according to the documents. "For some loans, Contreraz modified an electronic version of the client's actual pay stubs and tax documents," the court documents said.Others lied about having jobs as company managers. If bank loan officers needed to verify employment and income, Contreraz told his customers to give them family and friends' contact numbers.Contreraz last week agreed to plead guilty to bank fraud and now faces up to 30 years in federal prison for his trickery, as well as a maximum fine of $1 million and restitution to his victims, court records show. His schemes resulted in about $30 million in loans being dispersed, according to plea documents.   Continue reading...

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