(Published Saturday, October 13, 2007 01:06:23 AM CST)
A d v e r t i s e m e n t
By Mike Heine mheine@gazetteextra.com
MILWAUKEE-A Delavan man pleaded guilty to federal wire fraud Friday morning in a growing mortgage fraud investigation that struck Walworth County in 2004.
Martin Valadez, 31, had a hand in swindling six mortgage lending companies of more than $2.9 million through 13 fraudulent sales of 12 properties.
Valadez secured straw buyers and the false identities used to purchase homes at inflated values that the straw buyers never intended to live in.
Prosecutors say Valadez participated in the scheme with his father, Jose Valadez, 53, Delavan, and James Lytle, 33, of Lake Geneva, both of whom have signed plea agreements admitting wire fraud. Lytle already has pleaded guilty. Jose Valadez's case still is pending after his original lawyer died.
Martin Valadez
Others may have participated in the scheme, and further charges are possible, Assistant U.S. Attorney Carol Kraft said.
Lytle, a former mortgage broker, and Martin Valadez were the major players in the scheme, Kraft said. Jose Valadez once posed as a straw buyer in the scam, according to court documents.
Lytle pleaded guilty to wire fraud for swindling nearly $4 million from eight lending companies for the phony sales of about 20 properties.
Martin Valadez will be sentenced Jan. 11, the day after Lytle is sentenced. He faces a maximum of 20 years in prison and $250,000 in fines.
He remains in custody for a probation revocation because he admitted involvement in the scam. He has prior felony convictions dating to 1999 of possession of cocaine and escape, according to court records.
