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Ashburn Man Sentenced in 8 Million Dollar Mortgage & Money Laundering Scheme | Crime

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Ashburn Man Sentenced in 8 Million Dollar Mortgage & Money Laundering Scheme
Crime, News, People

From Loudoun Sheriff:

Loudoun County, VA:  An Ashburn, Virginia man was sentenced Monday, July 11, 2011 for his involvement in a mortgage and money laundering scheme where he fraudulently obtained 21 mortgages with a total of $8-million-dollars in liabilities.  
  
Between 2005 and 2006, Edilio A. Barahona, 49, falsified loan applications on 11 homes, all in Eastern Loudoun County. Each of the homes was valued in excess of $500,000. Barahona was laundering money from his own business, E&M Sportswear, based in Washington, DC. The business reportedly sold counterfeit sports merchandise.  Barahona was using the homes to launder money from his business and was attempting to sell the homes at a higher price.  A majority of the homes ended up in foreclosure.   
  
Barahona pled guilty in March 2011 to four counts of false statements to obtain credit and one count of money laundering. Barahona was sentenced in Loudoun County Circuit Court on Monday to 15 years in prison with all but 60 days suspended; three years supervised probation and 300 hours of community service.   He remains held at the Loudoun County Adult Detention Center.   
  
The mortgage fraud scheme came to light in October 2006 when the Loudoun County Sheriff’s Office was conducting a search warrant on a home on Riverpoint Drive in Lansdowne, Virginia in an unrelated investigation.   The case was investigated by the Loudoun County Sheriff’s Office Financial Crimes Unit and the Virginia Office of the Attorney General's Financial Crimes Intelligence Center.

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