Queens DA: Mauricio Villamarin and Four Co-Defendants Charged in Alleged $3 Million Fake 'Fix-and-Flip' Investment Scheme

Published Oct. 21, 2026. Case status is current as of that date.

Many of the would-be investors said they didn't have money to invest. According to the Queens District Attorney's Office, that wasn't a problem for the people pitching them: a "third-party consultant" could take out loans and credit cards in the investors' own names, and the company would make the monthly payments until the real estate profits rolled in. Prosecutors say the money went to the defendants instead, and the debts stayed with the victims.

On Oct. 8, 2026, Queens District Attorney Melinda Katz announced a 78-count indictment against five defendants accused of running a fraudulent real estate investment scheme through a company called World Business Holdings that allegedly took nearly $3 million from victims [1]. Four are named in the release: Mauricio Villamarin, 55, of Maspeth; Julian Velez, 46, of Rego Park; Linoshka Guzman, 35, of the Bronx; and Diana Leal, 44, formerly of Jackson Heights and now of Florida. A fifth defendant, 61, formerly of Forest Hills, was not named and remains at large [1].

Important: "Criminal complaints and indictments are accusations. A defendant is presumed innocent until proven guilty," the DA's office said [1]. None of the defendants has been convicted.

Status: Indicted. The DA said three defendants were arraigned on Tuesday, Oct. 6, before Queens Supreme Court Justice Leigh Cheng and were ordered to return to court Oct. 29; one was apprehended in Florida and will be arraigned later; and one remains at large. The release does not say which named defendants were arraigned [1].

How the alleged scheme worked

According to the charges and investigation, as described by the DA [1]:

1. The pitch. Villamarin allegedly told people he was buying distressed homes, renovating them and selling them for profit through World Business Holdings. Velez was represented as his employee. The two pitched nearly all the victims and taught courses on entrepreneurship and real estate investing.
2. The "no capital needed" twist. When people said they lacked money, Villamarin and Velez allegedly said a third-party consultant could get loans and credit cards in the victims' names, which the victims would surrender to the company or let it charge. Most victims were promised monthly Zelle payments to cover those debts until profits arrived.
3. The applications. Guzman allegedly went to victims' homes, often with Villamarin, to fill out loan and credit applications using the victims' personal information. Prosecutors say the defendants often inflated victims' incomes to get bigger loans and higher credit limits.
4. Phantom properties. Some victims got no updates; others were told their money went into specific homes in Corona, on Long Island or in Westchester County. Public records showed the defendants never bought the Corona and Westchester homes. A company they controlled did buy, renovate and sell the Long Island property, but the proceeds allegedly went to accounts the defendants controlled.
5. A stolen house. In one instance, the defendants allegedly had a Spanish-speaking Connecticut couple sign a document, then used the signatures and a fake notarization stamp to transfer the couple's home to a company they controlled and took out a mortgage on it, without the couple's knowledge.

Prosecutors say money went to office rent in Long Island City, which kept up the company's appearance of legitimacy, and to personal spending including restaurants, airfare, hotels, Lyft, Netflix and Louis Vuitton [1]. Victims were left with loan and credit card debt, lender lawsuits, judgments and bankruptcies, the DA said.

The people charged

Defendant	Charges listed by the DA
Mauricio Villamarin, 55, Maspeth	Criminal possession of stolen property 1st degree; conspiracy 4th degree; scheme to defraud 1st degree; 8 counts grand larceny 2nd degree; 8 counts grand larceny 3rd degree; 15 counts identity theft 1st degree; 44 counts falsifying business records 1st degree
Linoshka Guzman, 35, Bronx	Same top charges; 4 counts grand larceny 2nd; 7 counts grand larceny 3rd; 12 counts identity theft 1st; 34 counts falsifying business records 1st
Julian Velez, 46, Rego Park	Same top charges; 6 counts grand larceny 2nd; 8 counts grand larceny 3rd; 15 counts identity theft 1st; 44 counts falsifying business records 1st
Diana Leal, 44, formerly Jackson Heights, now Florida	Same top charges; 6 counts grand larceny 2nd; 8 counts grand larceny 3rd; 15 counts identity theft 1st; 44 counts falsifying business records 1st

If convicted, each faces up to 25 years in prison, according to the DA [1]. The U.S. Secret Service and the NYPD's Financial Crimes Task Force worked on the investigation.

Red flags

• Being told you can invest with borrowed money taken out in your name, with the promoter promising to make the payments.
• Someone else filling out your loan or credit applications, especially if they list a higher income than you earn.
• Investment "courses" that funnel students into the instructor's own deals.
• Vague or no updates on specific properties, or property addresses that public records show the company never owned.
• Documents you're asked to sign quickly, in a language you don't read well, or with a notary who isn't present.

What to do

1. Never let anyone open credit in your name for an investment, and never sign an application with false income. You remain responsible for the debt.
2. Check property records for any home you're told your money bought.
3. Check your credit report for accounts you didn't open, and freeze your credit if you've shared personal information with a promoter.
4. If you've lost money or had accounts opened in your name, report it at IdentityTheft.gov [2] and contact the Consumer Financial Protection Bureau's fraud resources [3].
5. Contact local prosecutors. In Queens, the DA's office can be reached at 718-286-6000 [1].

Case status (as of Oct. 21, 2026)

Defendant	Court	Status as of Oct. 21, 2026	Source
Mauricio Villamarin, 55, Maspeth	Queens Supreme Court (state)	Indicted; presumed innocent	[1]
Julian Velez, 46, Rego Park	Queens Supreme Court (state)	Indicted; presumed innocent	[1]
Linoshka Guzman, 35, Bronx	Queens Supreme Court (state)	Indicted; presumed innocent	[1]
Diana Leal, 44, Florida (formerly Jackson Heights)	Queens Supreme Court (state)	Indicted; presumed innocent	[1]
Unnamed defendant, 61, formerly Forest Hills	Queens Supreme Court (state)	Indicted; at large; not named by DA	[1]

Three defendants were arraigned Oct. 6 and due back Oct. 29; one was to be arraigned after apprehension in Florida. Statuses can change. Those not convicted are presumed innocent.

Sources

1. Queens County District Attorney's Office, "Five Defendants Indicted for Phony Real Estate Investment Scheme," Oct. 8, 2026. https://queensda.org/five-defendants-indicted-for-phony-real-estate-investment-scheme/
2. Federal Trade Commission, IdentityTheft.gov (accessed Oct. 21, 2026). https://www.identitytheft.gov/
3. Consumer Financial Protection Bureau, fraud and scams resources (accessed Oct. 21, 2026). https://www.consumerfinance.gov/consumer-tools/fraud/

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