Supervisor Hopeful Ugenti-Rita Faces Explosive Mortgage Fraud Allegations

A political activist has accused Michelle Ugenti-Rita of falsifying her marital status on a mortgage application.

PHOENIX — In April 2023, Michelle Ugenti-Rita secured a $680,000 mortgage on a home valued at $850,000. Documents show Ugenti-Rita as an “unmarried” sole borrower, although she was still legally married.

According to court records, Ugenti-Rita’s husband filed for divorce four months after the mortgage was obtained. However, the couple remains married as their divorce proceedings continue.

A political activist believes this case amounts to felony disclosure fraud and calls for a law enforcement investigation. Incumbent Thomas Galvin, her opponent in the primary race, considers this allegation another example of a history of scandal.

Last week, a 12News reporter approached Ugenti-Rita at the property listed on the mortgage. Ugenti-Rita did not respond and went inside the home.

Bill Coffin, a citizen muckraker, initially exposed the alleged fraud on social media. Coffin sent letters to the Arizona Attorney General and mortgage lender Rocket Mortgage, requesting an investigation. Rocket Mortgage confirmed an internal review, and the Attorney General’s Office acknowledged receipt of Coffin’s complaint but did not comment further.

“I would respectfully submit that she (Ugenti-Rita) has committed a willful and material felony mortgage fraud,” Coffin wrote.

Coffin is known for uncovering documents on alleged financial misdeeds by politicians.

“She (Ugenti-Rita) was a real estate agent for 15 years. She knew what she was doing,” Coffin said. “Disclosure fraud is serious. If the laws don’t apply to you, then yeah, I don’t believe you should be supervising the rest of us.”

Four months after Ugenti-Rita obtained the mortgage, her husband Brian Townsend filed for divorce. His attorney argued that the marital residence was fraudulently titled.

Despite being married, Ugenti-Rita and Townsend are living separately and negotiating the terms of their divorce.

Efforts to reach Townsend for comment were unsuccessful.

As Ugenti-Rita campaigns for District 2 Supervisor, incumbent Thomas Galvin mentioned, “My opponent has a long history of scandal, and the mortgage fraud investigation is just one more. I’m proud to be endorsed by every police association and believe the contrast for voters is clear.”

In 2018, a former lobbyist alleged sexual harassment by Ugenti-Rita and Townsend at the state capitol. An independent investigation found Townsend culpable, not Ugenti-Rita. The two were dating then and later married.

Kelly Powers of the Arizona Mortgage Lenders Association explained the significance of disclosure fraud. “It’s all about risk and knowing the risk in terms of income, credit, portfolios,” she said. While unfamiliar with the Ugenti-Rita case, Powers noted that misrepresenting marital status could arise during divorce proceedings.

“It matters with different loan types,” Powers said. “Misconstruing your marital status could be a tactic to keep a spouse unaware of financial actions during a divorce.”

This is a completely advertising post.