Three women from Texas have been indicted for their alleged involvement in a mortgage fraud scheme that targeted financial institutions and mortgage companies, resulting in millions of dollars in losses.
Nicole Espinosa, 35, of Plano, known as the "Short Sale Queen"; Stephanie Smith (also known as Stephanie Parks), 44, of Midlothian; and Selena Baltazar-Hill, 28, of Dallas, were charged in a two-count federal indictment on November 20, 2024. The charges include conspiracy to commit wire fraud affecting a financial institution and conspiracy to submit false statements to a federally insured financial institution.
Federal investigators allege that between 2017 and 2024, the women operated the scheme through companies, including Short Sale Queen, L.L.C. They allegedly targeted homeowners in the pre-foreclosure short sale process, convincing them to list their properties for sale. According to court documents, the defendants submitted fraudulent documents, such as falsified purchase agreements and altered proof-of-funds letters, to financial institutions to delay or halt foreclosure proceedings.
This scheme allegedly affected at least 88 properties, totaling over $8 million in sales. The defendants are accused of obtaining approximately $390,000 in commissions and fees while causing an estimated $2.5 million in losses to financial institutions.
The defendants were arrested and appeared before U.S. Magistrate Judge Aileen Goldman Durrett on December 4, 2024. If convicted, each faces up to 30 years in federal prison.
The case is being investigated by the Department of Housing and Urban Development, Federal Housing Finance Agency, and Department of Veterans Affairs. Assistant U.S. Attorney Anand Varadarajan is prosecuting the case.
A federal indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty in a court of law.
