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.

NY Ring Busted

Sandella Group members indicted

April 26, 2006


Eight people have been indicted in a New York mortgage fraud ring that prosecutors say operated for five years and cost lenders and consumers millions of dollars.

The 83-count indictment against members of The Sandella Group, which operated in and around New York City, was announced by New York Attorney General Eliot Spitzer and state Banking Superintendent Diana L. Taylor. Spitzer said he has filed a civil forfeiture action that seeks the recovery of more than $8 million from the defendants.

"The scams carried out by these defendants not only harmed targeted individuals and lending institutions," Spitzer said in a statement, "but had the potential to undermine the housing market in the neighborhoods where they practiced their scheme. Protecting New York's real estate market from this kind of fraud must be a priority for all law enforcement."

Spitzer said the total amount of the alleged fraud is still being determined.

The indictment, filed in Kings County Supreme Court, alleges that members of the "Sandella enterprise stole millions of dollars from banks and other financial institutions by submitting false and forged documents to secure mortgage loans."

Indicted were Louis Sandella, identified as the group's leader; his brother, Michael Sandella; real estate lawyers Gary S. Shaw and Ida D'Angelo; and John J. Walsh, Danielle Moss, Geraldine Moss and Andreas Perdikos.

According to Spitzer, The Sandella Group paid people to act as straw buyers, who allegedly used phony documents to bilk lenders out of loans. Appraisers and real estate lawyers were also involved, he said.

"False information about these straw buyers' employment, income and financial assets were provided to the banks to obtain the loans," according to the statement. "The banks were also provided false real estate appraisal reports which often misrepresented the physical conditions of the properties, the market value of comparable properties and the identities of the individuals who prepared the reports."

The reports, which Spitzer said were prepared by The Sandella Group, inflated properties value by as much as $100,000.

The statement carried an example of how the alleged scam worked. It involves the January 2004 sale of a house in the Flatbush section of Brooklyn.

While the actual value of the house was $310,000, "the Sandella Group falsely told the bank that the purchase price was $450,000, and applied to the bank for a loan in that amount."

"The criminal enterprise gave the bank false information about the financial condition of a 'straw buyer' that it recruited as a front man in the transaction, and submitted a forged appraisal report," according to Spitzer's statement. "The group then pocketed the bulk of the inflated amount, and allowed the loan to go into default."

The eight defendants have been charged with a number of felonies, including grand larceny, operating a criminal enterprise, fraud and falsifying business records. They face up to 25 years in prison.

Patrick Crowley is a feature journalist and blogger for He is also a reporter, blogger and columnist for The Cincinnati Enquirer.
e-mail Patrick at: [email protected]

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