Aurora resi broker orchestrated $23M Ponzi scheme through mortgage scam: feds

(Credit: iStock)

Federal prosecutors said a west suburban real estate broker orchestrated a $23 million Ponzi scheme, pocketing more than $3 million in investor money for expensive jewelry and exotic vacations.

Michelle Labra of Yorktown was indicted on three counts of wire fraud and one count of making a false statements to authorities in connection with the scheme, the U.S. Attorney’s office in Chicago said Friday.

Prosecutors said Labra owned and operated Labra Group Realtors in Aurora. Through the firm, she promised potential investors returns of more than 14 percent on short-term, high-interest mortgages to borrowers.

More than 25 investors gave Labra more than $23 million from 2009 to 2015, prosecutors said.

Labra, though, never underwrote any loans, prosecutors said. Instead, she paid out $19.6 million in early returns to investors as part of the Ponzi scheme, and used more than $3.3 million of the money on personal expenses including expensive jewelry and vacations to Jamaica, Mexico and Guatemala, prosecutors said.

The 47-year-old lied to investors who began asking where their money and returns were, at one point falsely claiming the IRS had seized the funds, prosecutors said.

She could face up to 65 years in prison if convicted on all counts.

Attempts to reach Labra were unsuccessful. The phone number for Labra Realtors Group has been disconnected.

Recommend0 recommendationsPublished in Real Estate

Share this story with your network.

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print


Recent Stories

Del Marie: locked down, but not out

The rapper-dancer-performance poet rolls with the pandemic punches. 2020 started off so well. January and February were great months for 27-year-old rapper, dancer, and performance

Read More »

Speak with a local expert now.

Learn more about this recent happening by speaking with an agent.