A former Florida title attorney has pleaded guilty to three federal wire-fraud charges after prosecutors accused him of using fabricated mortgage records, misleading title commitments and a series of real estate closings to deceive lenders, financial institutions and title insurers. The alleged scheme lasted nearly six years and involved hundreds of thousands of dollars in seller proceeds.
Key takeaways
- Michael Saracco admitted to three federal wire-fraud counts.
- Prosecutors say the scheme ran from August 2019 through July 2025.
- The alleged conduct involved undisclosed liens, false filings and nonexistent title insurance coverage.
- Saracco faces up to 20 years in prison on each count, with sentencing set for Dec. 2, 2026.
How the alleged scheme worked
Saracco, 40, of Cocoa, Florida, previously owned Driftwood Title and All Florida Property Solutions. According to court documents, he sought loans from private lenders and funding companies using properties he claimed to own or planned to acquire as collateral.
Investigators said he represented that the properties were free of other claims and told lenders that mortgage documents had been recorded with county officials. Prosecutors allege those representations were false. Saracco then pursued additional financing without disclosing existing mortgages, creating a chain of transactions that concealed the properties’ true debt positions.
Fraudulent closings and title representations
The alleged conduct also involved real estate sales and escrow transfers. Financial institutions sent wire funds through Driftwood accounts, while buyers allegedly remained unaware of liens that had not been recorded or disclosed. Prosecutors said money intended to repay earlier obligations was redirected through AFPS instead.
Court filings further allege that Saracco issued title commitments indicating that Driftwood had secured policies from title underwriters, even though those policies had not been issued. The arrangement exposed lenders, buyers and insurers to losses if the underlying transactions failed or the hidden liens surfaced.
Investigation and potential sentence
The case was investigated by the Federal Housing Finance Agency’s Office of Inspector General and the Brevard County Sheriff’s Office. US Attorney Gregory W. Kehoe announced the federal charges and plea.
Saracco’s guilty plea resolves the criminal case at the admission stage, but the full amount of financial harm has not been publicly disclosed. Each wire-fraud count carries a potential maximum sentence of 20 years in federal prison. A federal judge is scheduled to determine the sentence in December.
Warning for mortgage and title professionals
The case highlights the risk of relying on borrower or settlement-agent representations without independently verifying public records. Undisclosed debt can remain hidden when multiple lenders, properties and transactions are linked together over time.
Industry professionals can reduce exposure by:
- Confirming lien status directly with the relevant recording office.
- Verifying title insurance coverage with the named underwriter.
- Reviewing escrow activity and payoff documentation before releasing funds.
- Monitoring repeat borrowers, properties and transaction patterns for inconsistencies.
Mortgage-fraud indicators remain a significant concern in Florida, making independent verification especially important for brokers working with private lenders and other nonbank funders.
Sources
- Florida attorney pleads guilty in six-year real estate fraud, Mortgage Professional America.