Permian Basin Men Convicted in Multi-Million-Dollar Bank Fraud Scheme
|U.S. Attorney’s Office October 21, 2013|
Raymond Holguin, Jr., of Odessa, Texas, faces up to 30 years in federal prison after pleading guilty this morning to defrauding My Community Federal Credit Union of millions of dollars, announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Holguin, age 35, was the third man to enter a plea to conspiracy to commit bank fraud in connection with this investigation. Michael Franco, age 40, and Gustavo Pizarro, age 37, both of Midland, previously entered guilty pleas to the same charge and are awaiting sentencing.
According to court records, beginning in April 2007, Holguin, Pizarro, and Franco engaged in an 18-month-long scheme that defrauded the FDIC-insured financial institution through the issuance of fraudulent car loans. Holguin, operator of Motor City, an auto dealership in Odessa, Texas; Pizarro, general sales Manager at Motor City; and, Franco, a loan officer at My Community Federal Credit Union, all devised a plan to approve car loans for customers who did not meet the credit union’s lending standards. Holguin and Pizarro presented auto loan applications to Franco that included false information such as inflated income. Holguin and Pizarro would also add amenities to the cars that did not exist in an effort to increase the value of the car and receive a larger loan amount. Franco never verified any of the information contained in the loan documents before processing the loans and, in return, was paid a kickback by Holguin for every car loan that was approved. The scheme resulted in Franco approving more than 300 fraudulent car loans on behalf of Holguin and Pizarro which led to a loss at My Community Federal Credit Union of approximately $3.9 million.
Franco is scheduled to be sentenced on November 22, 2013, before United States District Judge Robert A. Junell. Pizarro is scheduled for January 9, 2014. A sentencing date for Holguin has yet to be scheduled.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney V. LaTawn Warsaw.