Area resident admits role in mortgage fraud scheme

A Manalapan resident has admitted her role in a scheme to defraud a financial institution of hundreds of thousands of dollars, U.S. Attorney Craig Carpenito announced on June 16.

Blanca A. Medina, 54, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a one-count information charging her with conspiracy to commit bank fraud.

According to documents filed in the case and statements made in court, from 2015-18, Medina conspired with others to fraudulently obtain mortgage loans from “Mortgage Lender A” in Monmouth County to finance the purchase of properties by unqualified buyers.

Applicants for mortgage loans are required to list their assets and income on their mortgage loan applications, and mortgage lenders rely on those applications when deciding whether to issue mortgage loans.

Medina, a former loan officer for “Mortgage Lender A,” admitted to participating in a conspiracy in which she knowingly caused completed mortgage loan applications that contained multiple misrepresentations of material facts regarding the buyers’ assets and income to be submitted to “Mortgage Lender A.”

A conspirator provided Medina with false and fraudulent documents for potential borrowers, including false and fraudulent lease agreements, bank statements, and a gift check and gift letter.

Based on these lies, “Mortgage Lender A” issued mortgage loans to unqualified buyers, which caused “Mortgage Lender A” hundreds of thousands of dollars in losses.

The conspiracy charge to which Medina pleaded guilty carries a maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for Oct. 20, according to a press release from the U.S. Attorney’s Office.