News


Five Arrested in Tampa Mortgage Fraud Scheme

 
The Florida Department of Law Enforcement (FDLE) Tampa Bay Regional Operations Center, Hillsborough County Consumer Protection Agency, and Attorney General Pam Bondi’s Office of Statewide Prosecution announce the arrest of five individuals today for their role in a mortgage fraud scheme that spanned Pinellas, Pasco, Hillsborough, Hernando, Osceola, Seminole and Orange counties and other jurisdictions. The investigation centered around 50 fraudulent mortgage applications involving 33 properties that were purchased from April 21, 2003 to Dec. 14, 2007. Many of the fraudulent loans were the personal loans of the subjects arrested.

 
“Investigating mortgage fraud continues to be a top concern for the Attorney General’s Office,” said Attorney General Bondi. “We will continue to work with FDLE, the Hillsborough County Consumer Protection Agency and others to stop these fraudulent schemes.”
 
“Running a scam to capitalize on the then booming housing market clearly backfired in this case,” said Commissioner Gerald Bailey.  “I appreciate the tenacity and expertise of the investigators who untangled this complex web of falsified paperwork and foreclosed properties.”
 
The subjects prepared and submitted 50 fraudulent residential mortgage loan applications and associated documents to residential mortgage loan lenders. The purpose for the submissions was to deceive the lenders into believing that the fraudulent documents were true and accurate, thereby convincing the lender to fund the loans. Ultimately, the lenders approved the residential loan applications and funded 50 mortgage loan applications totaling approximately $8.8 million. Of the properties involved, 22 were the subject of foreclosure proceedings which resulted in over $3 million in final judgments.
 
We hear about mortgage fraud being so common in Florida.  But this case is different with friends and family members actually working in the mortgage business, as well as being the buyer and borrower, ripping off the lenders and leaving a trail of foreclosed properties,"  stated Chief Investigator Kevin L. Jackson of the Hillsborough County Consumer Protection Agency. 
 
The following individuals were arrested and booked into the Hillsborough County Jail:
 
  • David Barile, 43, of Tampa, was charged with one count conspiracy to commit racketeering, and received a $700,000 bond;
  • Melissa Barile, 35, of Tampa, was charged with one count conspiracy to commit racketeering, and received a $400,000 bond;
  • Eric Rivero, of Tampa, was charged with one count of racketeering, and one count of conspiracy to commit racketeering, and received a $600,000 bond;
  • Craig Hudson, 39, of Tampa, was charged with one count of racketeering, one count of conspiracy to commit racketeering, and one count of grand theft, and received a $700,000 bond;
  • Lynne B. Hudson, 34, of Tampa, was charged with one count of racketeering, and one of count conspiracy to commit racketeering, and received a $600,000 bond
 
Additional arrests are anticipated in this case.
 
For Further Information Contact:
Heather Smith, Keith Kameg, or Kristi Gordon
Office of Public Information
(850) 410-7001