PLANO, Texas — Three North Texas women, including one known as the "Short Sale Queen," have been indicted on mortgage fraud allegations, according to federal authorities.
Nicole Espinosa, 35, of Plano; Stephanie Smith, 44, of Midlothian; and Selena Baltazar-Hill, 28, of Dallas, face two counts in the indictment, according to the U.S. Attorney's Office for the Eastern District of Texas: Conspiracy to commit wire fraud affecting a financial institution and conspiracy to submit false statements to a federally insured financial institution.
A federal grand jury indicted the suspects on Nov. 20. They have since been arrested and are scheduled to appear before a federal magistrate judge on Wednesday.
Prosecutors say the allegations go back to 2017, when Espinosa, Smith and Baltazar-Hill began running a mortgage fraud scheme through various companies. Among the companies was Espinosa's Short Sale Queen, L.L.C.
Prosecutors say the three suspects researched and found properties that were going through the foreclosure short-sale process. They would then approach the owners about listing the properties for sale, according to a new release from prosecutors.
After signing an agreement with the owners, prosecutors say, the suspects would submit "various fraudulent documents" to financial institutions and mortgage companies to stop the foreclosure process.
These documents included fake purchase agreements from purported buyers, prosecutors say, and altered "proof of funds" letters showing that the purported buyers had a way to buy the property.
Because of these documents, prosecutors say, financial institutions stopped the foreclosure process, waived the collection of fees and let the suspects have time to find an actual buyer, or then cancel the deal if they couldn't.
Prosecutors say the suspects fraudulently submitted documents for at least 88 properties, which totaled more than $8 million in sales. The suspects obtained at least $390,000 in commissions and processing fees, causing a loss of at least $2.5 million to financial institutions.
The suspects face up to 30 years in federal prison, according to the release.
