Robert Policastro, 57, most recently of Vienna, Austria, has plead guilty to conspiring to commit mail and wire fraud related to mortgage fraud. Policastro faces a maximum penalty of twenty years in federal prison and a fine of up to $18.1 million.
According to court documents, Policastro, an architect, conspired with a title agent and others to obtain more than $9 million in mortgage loans from various lenders for the purchase of properties. The loans were generally obtained through the use of false, “dueling” HUD-1s, that is, fraudulent settlement statements that failed to disclose to the lenders the existence of other lenders involved in financing the purchase of the properties. The statements also included the false and fraudulent claim that Policastro had provided large down payments for the loans, when, in realty and unknown to the lenders, Policastro had contributed no money and was making a profit from the deals.
United States Attorney A. Brian Albritton made the announcement.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.