twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com 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 MortgageDaily.com.

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

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

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

Press Releases
Reports and announcements from MortgageDaily.com.

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

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.reversefunding.com

subscribe to free Mortgage Daily email newsletter

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

FOR IMMEDIATE RELEASE:

Nov. 2, 2011


Attorney Convicted in Manhattan Federal Court on Multi-Million-Dollar Mortgage Fraud Conspiracy, Bank Fraud, and Money Laundering Charges

PREET BHARARA, the United States Attorney for the Southern District of New York, announced that LOUIS CHERICO was convicted yesterday in Manhattan federal court of conspiring to commit bank fraud, bank fraud related to three separate mortgages, and one count of money laundering. U.S. District Judge COLLEEN MCMAHON presided over the three-week jury trial.

According to the trial evidence and other documents filed in the case:

LOUIS CHERICO was an attorney who practiced in New York City and Westchester County. From July 2002 through the end of 2002, CHERICO participated in a fraudulent real estate investment scheme, which had as its primary objective the purchase of multi-million-dollar residential properties in various communities in Westchester County. The purchases were made with loans obtained through the submission of false and misleading information to banks and other lenders. Many of the loans were equal to, or in excess of, one hundred percent of a property's actual sale price, so that the defendant and his co-conspirators did not have to put any of their own money at risk in the transactions.

CHERICO served as the attorney for various co-conspirators in negotiating and closing the fraudulent purchases that were part of the scheme. CHERICO and his co-conspirators submitted various documents, including loan applications, contracts of sale, deeds, real estate transfer documents, and title reports to federally insured banks. Those documents contained materially false or misleading information about the income, assets, existing debt and creditworthiness of the borrower, the chain of title to the property, and the sale price of the home. Those documents also certified the borrower's intent to reside in the property as a primary residence, when, in fact, the properties were typically purchased for investment purposes.

As a result of the scheme to defraud, CHERICO and his co-conspirators obtained millions of dollars in loan proceeds, enabling them to control certain properties that they otherwise would not have been able to purchase and finance.

CHERICO also laundered the illegal proceeds obtained from the sale of one of the properties used in the mortgage fraud scheme by transferring the proceeds from a bank account he controlled to an account that was controlled by one of his co-conspirators, DOMINICK DEVITO. The transaction was designed to conceal and disguise the nature, location, source, ownership, and control of the illegal proceeds.


***

CHERICO, 70, of Eastchester, New York, faces a maximum sentence of 30 years in prison on the count of conspiracy to commit bank fraud, 30 years in prison on each of the three counts of bank fraud, and 20 years in prison on the money laundering count, as well as a maximum $1,000,000 fine. CHERICO was acquitted of two additional counts of bank fraud and one count of obstruction of justice. He is scheduled to be sentenced by Judge MCMAHON on March 6, 2012, at 4:00 p.m.

Mr. BHARARA thanked the FBI for their assistance in this investigation.

This case is being prosecuted by the Office's Organized Crime Unit. Assistant United States Attorneys NICHOLAS L. MCQUAID and JASON A. MASIMORE are in charge of the prosecution.


Source: United States Attorney's Office for the Southern District of New York

Local Mortgage Fraud news
News about local mortgage fraud.


Logout forgot
password?

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

free mortgage news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

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

sales blog

secondary marketing

social media

servicing news

subprime news

wholesale lenders

wireless mortgage news