People v. Caraga

Defendant, and 4 codefendants, participated in organized scheme to commit mortgage fraud. Straw buyer in this transaction was an undercover federal agent, and part of a sting operation. Defendant was convicted, after bench trial, of loan fraud, financial institution fraud, attempted theft, wire fraud, and forgery. Defendant's knowledge of conspiracy and agreement to participate were evidence from his statements during and immediately after raid when federal agents stopped the closing. His words and actions showed that he knew about mortgage fraud conspiracy and he agreed to become part of it when he completed loan application for purported buyer, whom he knew would not be living in the property (which was fraudulent for FHA loans). Coconspirator statements made outside of a defendant's presence or before Defendant agrees to participate in transaction are admissible under the co-conspirator's exception.Sufficient evidence showed Defendant's intent to aid and abet co-conspirators in accomplishing the mortgage fraud. Defendant's failure to possess a loan originator's license was relevant for background purposes, and was not overly prejudicial. (PUCINSKI and HYMAN, concurring.)