An East Haven woman has been sentenced to more than two years in federal prison after pleading guilty to her role in a multi-million dollar mortgage fraud scheme that involved U.S. Department of Housing and Urban Development’s (HUD) insurance program.
Loise Lampo-Diglio, 43, was sentenced to 33 months of imprisonment, followed by two years of supervised release, by Senior United States District Judge Alfred V. Covello in Hartford on Tuesday.
Mortgage Fraud Conspiracy
According Connecticut U.S. Attorney's Office Spokesperson Thomas Carson, Lampo-Diglio participated in a mortgage fraud conspiracy by serving as a paralegal in connection with fraudulent real estate transactions in New London County.
As part of the scheme, Lampo-Diglio served as , a licensed attorney, to prepare and submit fraudulent paperwork to lenders — including materially false HUD-l settlement statements — Carson stated in a press release Wednesday.
"For example, in connection with the August 2006 sale of a house at 5 Coit Street, New London, Lampo-Diglio prepared and submitted a HUD-1 form for a sham sale that never occurred," Carson stated. "She also prepared a HUD-1 form in connection with a subsequent refinance of 5 Coit Street."
Carson added that athough the HUD-1 form indicated certain private mortgages were being paid out of the refinance proceeds, "Lampo-Diglio knew that the refinance proceeds were being used to pay off her co-conspirators, Jose Guzman and Stacey Petro."
'Straw Purchasers'
In addition, Carson stated that from about 2004 to 2007 — in connection with numerous real estate transactions for various licensed attorneys — Lampo-Diglio "prepared and sent materially false closing documents to lenders."
"One or more of these mortgage loans were insured by the U.S. Department of Housing and Urban Development’s (HUD) insurance program," Carson stated.
He added that among the false statements made to the lenders were documents that falsely indicated that the buyers of certain properties were planning to make the properties their primary residences.
"When, as Lampo-Diglio knew, the buyers were straw purchasers who did not intend to make the properties their primary residences," Carson stated.
Paying Restitution
On Dec. 14, 2011, Lampo-Diglio pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.
Judge Covello ordered Lampo-Diglio to pay restitution of $6,348,403.15, jointly and severally with her co-defendants.
Sixteen individuals — including Kinney, Guzman and Petro — have been charged as a result of this mortgage fraud investigation, which has resulted in losses of several million dollars to lenders.
All 16 defendants have pleaded guilty.
On May 1, Judge Covello sentenced Petro to 41 months in prison. Kinney and Guzman await sentencing.
