twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.

P R E S S   R E L E A S E


May 12, 2011

Worcester Man Sentenced to Serve Time in Jail for Role in Mortgage Fraud Scheme

WOBURN A Worcester man has been sentenced to serve time in the House of Correction in connection with creating false or misleading bank documents that were used to obtain fraudulent mortgage loans worth millions of dollars, Attorney General Martha Coakley's Office announced today.

Kenneth Garabedian, age 55, of Worcester, pled guilty today in Middlesex Superior Court to charges of Making or Publishing False or Exaggerated Statements (10 counts), Aiding & Abetting the Misconduct of a Bank Employee (2 counts), Commercial Bribery, and Conspiracy (2 counts). After the plea was entered, Judge Jane Haggerty sentenced Garabedian to two and a half years in the House of Correction, with one year to serve and the balance suspended for a probationary period of three years. Garabedian must also pay a fine in the amount of four thousand dollars.

"The individuals who orchestrated this scheme used their positions in the banking industry and knowledge of the system to take advantage of a vulnerable housing market for their own personal gain, all the while inflicting serious damage to the local community," AG Coakley said.

Garabedian's guilty plea and sentence resolve the AG's investigation into a mortgage fraud ring based in Worcester County and organized by Allen Seymour. The other defendants who have pled guilty include:
  • llen Seymour, age 42, of Oxford, who pled guilty on November 15, 2010 to charges of Forgery (4 counts), Uttering (8 counts), Inducing a Lender to Part with Property (12 counts) and Larceny by False Pretenses and was sentenced to serve two years to two and a half years in State Prison, followed by five years of probation. Seymour's State prison sentence will begin after the completion of an unrelated federal prison sentence. Seymour was also ordered to pay restitution in the amount of $750,000 to the victims of the scheme. While on probation, Seymour is prohibited from working in the real estate industry.
  • Former Attorney Raymond A. Desautels III, age 43, of Oxford, who pled guilty on October 29, 2009 to five counts of Inducing a Lender to Part with Property and was sentenced to serve two years in State Prison.
  • Erik Tancun, age 31, of Marshfield, formerly a mortgage broker with Direct Finance, pled guilty on September 14, 2010, to charges of Making or Publishing False or Exaggerated Statements (37 counts), Aiding & Abetting the Misconduct of a Bank Employee (2 counts), Conspiracy (2 counts) and Commercial Bribery. Tancun was sentenced to serve two to two and a half years in State Prison.
The Attorney General's Office commenced an 11-month investigation in August 2007 after the office received information from the Commonwealth's Division of Banks regarding the production of false bank documents by a bank employee at a local bank. During the course of the investigation, authorities discovered that Ken Garabedian coordinated the production of some of the false bank documents, and paid one of the bank employees for completing the false bank documents.

Authorities determined that these false documents were used to bolster the loan applications of "straw buyers" in a widespread foreclosure rescue scheme based in Worcester County and operated by Allen Seymour.

Middlesex and Worcester Grand Juries returned indictments against five defendants, including Ken Garabedian, on June 26, 2008. A subsequent Worcester County Grand Jury returned indictments against Allen Seymour and three other defendants on September 25, 2009. All nine defendants have now pled guilty for their roles in the mortgage fraud scheme.

The case was prosecuted by Assistant Attorney General James O'Brien, Chief of Attorney General Martha Coakley's Public Integrity Division, and Assistant Attorney General Andrew Doherty, of AG Coakley's Fraud and Financial Crimes Division. Former financial Investigator James McFadden and Massachusetts State Troopers assigned to the Attorney General's Office conducted the investigation.

Source: United States Attorney's Office for the District of Massachusetts

Local Mortgage Fraud news
News about local mortgage fraud.

Logout forgot

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.

Mortgage Fraud Index
Dollar and index amount by quarter and state.

Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013

Mortgage Fraud News
News stories about fraud committed against home lenders.

Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.

local mortgage fraud

mortgage fraud links

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders