Former State Representative Involved in Mortgage Fraud Scheme

Former State Representative Involved in Mortgage Fraud Scheme

Victor Cuevas, 52,of Bristol, was sentenced on Monday, October 24, in New Haven to one year of probation and a $1,000 fine for conspiring with others to commit bank fraud in connection with his home mortgage loan applications.

According to court documents and statements made in court, in the summer of 2013, CUEVAS, a City of Waterbury employee and, at that time, the state representative for the 75th District, wanted to purchase a residence in Bristol with a Federal Housing Administration (“FHA”) loan.

The U.S. Department of Housing and Urban Development provides mortgage insurance on loans made through its FHA program and mortgages offered through the program are subject to certain restrictions, including restrictions on the funds that may be used to purchase properties.

Cuevas, with the assistance of others, represented to the mortgage bank that he was using gifted funds to purchase the property when, in fact, the money was not gifted but was instead loaned to Cuevas for the purpose of purchasing the property.

Specifically, Cuevas first represented to the mortgage bank that an individual who he identified as his nephew but, in fact, was a subordinate employee from the City of Waterbury, was providing him with cash to purchase the property as a gift.  When the mortgage lender asked for the “nephew’s” bank account statements to prove that he had the money to gift to Cuevas, Cuevas withdrew the mortgage application.  A few weeks later, Cuevas had a different Waterbury employee, who Cuevas  identified as his “cousin,” “gift” him the $7,000.  Both individuals signed a HUD statement under oath that the funds were, indeed, a “gift” and that no repayment of the monies was expected.  However, as soon as the mortgage closed, Cuevas re-paid the employee the $7,000.

On June 20, 2016, Cuevas pleaded guilty to one count of conspiracy to commit bank fraud.

Cuevas resigned from the Connecticut General Assembly in March 2016.