Volume 1 Number 21
May 24, 2004











TEXT-ONLY VERSION

PHONY MORTGAGE BROKER SENTENCED FOR ROLE IN FRAUD SCHEME

A Miami man who posed as a mortgage broker in order to steal mortgage funds from a local resident has been ordered to pay more than $42,000 in restitution and serve 10 years of probation.

Gary E. Stys, 37, of 20210 SW 83rd Ave., pleaded guilty to two counts of grand theft after he misrepresented himself as a mortgage broker in order to convince an area resident to apply for mortgage funds to refinance her home.  After helping her complete the forms, Stys informed the homeowner that her loan had been declined, when in fact it had been funded and diverted to an account controlled by Stys. The case was investigated by the Office of Financial Regulation.  

Stys was also ordered not to participate in the mortgage business for the duration of his probation.

"This is another example of why consumers should thoroughly research the background and licensing status of mortgage brokers and lenders they utilize," said Don Saxon, Director of the Office of Financial Regulation.

Consumers seeking mortgage loans are encouraged to verify that they are dealing with a licensed mortgage broker or lender.  The Department of Financial Services' toll-free consumer help line is available at 1-800-342-2762 from 8:00 a.m. to 7:00 p.m. E.S.T., Monday-Friday.

FTC Facts for Consumers