United States v. Hernandez, No. 19-1505 (7th Cir. 2020)Annotate this Case
Hernandez co-founded the Trust and marketed it as a company designed to assist homeowners struggling to pay their mortgages. She and her codefendants promised prospective “members” that, in exchange for fees of $3,500-$10,000, the Trust would negotiate with their lenders to take over their mortgages and stop or prevent foreclosure proceedings. The Trust promised to refund the fees if it could not purchase the mortgages. More than 50 homeowners became members and paid fees. In 2013, Illinois authorities discovered that the Trust was not licensed and did not have enough funds to purchase a single mortgage. Hernandez and her codefendants had spent the fees (more than $220,000) on meals, travel, and vehicles. The Trust did not help any homeowners; at least three homeowners who paid the Trust had their homes foreclosed on. A jury found Hernandez guilty of mail fraud. The Seventh Circuit affirmed, rejecting arguments that the government did not prove that she used the mails in furtherance of the scheme to defraud and that the district court improperly delegated its authority to the Bureau of Prisons by not entering a specific restitution payment schedule for her while serving her prison sentence. There was sufficient evidence to support the verdict and the court permissibly deferred Hernandez’s restitution payments until after her release.