United States v. Juan Rangel

I. Background

Rangel was indicted on multiple counts of mail fraud relat- ing to his ownership and operation of Financial Plus Invest- 12270 UNITED STATES v. RANGEL ments, a company purporting to offer investment services. Through Financial Plus, Rangel engaged in a Ponzi-type scheme whereby investors were offered a guaranteed rate of return supposedly backed by profits earned through the pur- chase and sale of real estate and through high interest loans to homeowners facing foreclosure. In reality, only a small fraction of the investors’ money was directed toward real estate investments. Financial Plus instead paid investors through funds deposited with the company by other investors. In addition, Rangel also engaged in a mortgage fraud scheme targeting Latino homeowners facing potential foreclosure. Through straw buyer purchases and fraudulent mortgage loan applications, Rangel directed loan proceeds into bank accounts that he controlled, causing significant losses to both the home owners and the lenders.

Rangel pled guilty to one count of mail fraud and one count of money laundering related to the mortgage fraud pursuant to a written plea agreement. The…