Denver metro real estate fraud scheme nets 24-year prison sentence

Jose Ricardo Sarabia-Martinez was sentenced to 24 years in prison after being found guilty of multiple counts related to mortgage fraud.

Jose Ricardo Sarabia-Martinez was sentenced to 24 years in prison after being found guilty of multiple counts related to mortgage fraud. 

Sarabia-Martinez was found guilty of felony violations of the Colorado Organized Crime Control Act, COCCA-Conspiracy, forgery, theft, and criminal impersonation.

Colorado Attorney General Cynthia H. Coffman says Sarabia-Martinez was “the mastermind of a fraudulent scheme that stole millions of dollars from his victims.” So how did that work? According to the release:

“Sarabia-Martinez, along with his fellow co-conspirators used their status as professionals in the real estate industry to execute a long-term diverse fraud for profit scheme. The scheme primarily centered on mortgage fraud including the manipulation of multiple real estate transactions through the use of fraudulent statements, material omissions, acquiring false identification and notary commissions, as well using “straw buyers” to buy and sell real estate properties that ultimately resulted in foreseeable foreclosures.

“When these straw buyers’ properties were foreclosed, Sarabia-Martinez and his partners had already been able to fraudulently acquire money through fees, commissions, and by diverting the excess profit that was obtained from facilitating these fraudulent loans from the deceived lenders.”

The activity happened not just in the City and County of Denver, but in Adams County and Arapahoe County. Five other co-conspirators pled guilty to various charges related to the scheme.