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


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:

August 23, 2012


Two Individuals Involved in Southeastern Connecticut Mortgage Fraud Scheme Sentenced to Prison

David B. Fein, United States Attorney for the District of Connecticut, today announced that two individuals involved in a southeastern Connecticut mortgage fraud scheme were sentenced yesterday by Senior United States District Judge Alfred V. Covello in Hartford.

According to court documents and statements made in court, from approximately 2004 to 2007, Jose Guzman and others used mortgage brokerage, property management, and home improvement companies to arrange for individuals ("buyers") to purchase real estate, primarily residential housing properties located in New London County, by obtaining funding from various mortgage companies and mortgage originators after submitting false information on the buyers' mortgage loan applications. The fraudulent information included information regarding income, assets, employment, rent history, as well as the buyers' intention to make the properties their primary residence. The buyers were compensated for participating in the scheme.

The government believes that more than 200 fraudulent mortgages were funded through this mortgage fraud scheme, causing more than $9 million in losses to lenders. Michael Russo, 47, of New Haven, was sentenced to 21 months of imprisonment, followed by two years of supervised release. On December 14, 2010, he pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.

Russo was a licensed real estate sales agent who worked with Guzman, Maurizio Lancia, William Athan, and others at Elizabeth Athan Realty in New London and Broad Street Investment Group in New London. During the conspiracy, Russo sought out residential real estate properties to be bought and sold and recruited three individuals to act as buyers in connection with the fraudulent purchase of eight properties. Russo knew that the mortgage loan applications and supporting documentation submitted to lenders in connection with these real estate transactions contained many false statements, including false representations that the buyers were going to make the properties their primary residences. On certain transactions, Russo acted as a witness and signed documents filed in connection with the closings. The individuals that Russo recruited received cash payments for acting as property buyers, and Russo sometimes received kickbacks from them. The eight properties ultimately ended up in foreclosure, resulting in losses to lenders totaling more than $1.7 million.

Russo was ordered to forfeit $65,000 and to pay restitution in the amount of $1,523,091.11.

Melissa Valentin, 28, of Uncasville, was sentenced to 18 months' incarceration, nine months of which she will spend in home confinement, and two years' supervised release. On August 30, 2011, Valentin pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.

Between June 2004 and August 2006, Valentin purchased approximately five houses in the New London area by providing false information on mortgage loan applications. Some of the properties were resold during the conspiracy and others ended up in foreclosure. For her role, Valentin received approximately $15,676 from Guzman.

Valentin was ordered to pay restitution in the amount of $622,993.

Sixteen individuals, including Guzman, Lancia, and Athan have been convicted of various charges stemming from this scheme. On April 3, 2012, Lancia was sentenced to 27 months of imprisonment. Guzman and Athan await sentencing.

This case has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development-Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and David T. Huang.

In July 2009, the U.S. Attorney's Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force or by sending an e-mail to ctmortgagefraud@ic.fbi.gov.

The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney's Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development-Office of Inspector General; Federal Deposit Insurance Corporation-Office of Inspector General; and State of Connecticut Department of Banking.

To report financial fraud crimes, and to learn more about the President's Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.


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


mortgage fraud case stories


mortgage fraud headlines

mortgage fraud blog

Mortgage Daily headlines


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