Attorney Arraigned in Mortgage Hijacking Scheme

admin —  December 21, 2009 — 4 Comments

Leon Gelfgatt, 49, a Marblehead, Massachusetts attorney, is charged for his role in a million dollar mortgage hijacking scheme. Gelfgatt is charged with Attempted Larceny, and Uttering (2 counts). Gelfgatt entered a plea of not guilty and was ordered held on $1 million cash bail . In the event that Gelfgatt posts bail, he has to surrender his Russian passport and wear an electronic monitoring bracelet.

Gelfgatt was arrested as he allegedly attempted to retrieve over $1.3 million dollars in payoff checks of mortgage funds in connection with a sophisticated mortgage fraud scheme. Gelfgatt allegedly used false documents to create the appearance that mortgages on several Massachusetts properties which were scheduled for impending sale had been transferred to a fake company allegedly created by Gelfgatt. Gelfgatt allegedly did this in order to obtain the payoff funds sent by real estate closing attorneys when the properties were sold.

According to authorities, Gelfgatt allegedly identified properties which were under agreement and scheduled for an imminent sale. He then allegedly recorded false documents at the Registry of Deeds indicating that his fake company was the new holder of any mortgages on those properties. He allegedly sought through this scheme to cause mortgage payoff funds to be delivered to the fake company, rather than to the rightful mortgage holders.

This arrest is the result of an intensive and ongoing investigation utilizing state-of-the art tools and techniques into fraudulent assignments recorded at several Registries of Deeds within Massachusetts. At this time, investigators believe that Gelfgatt may have fraudulently reassigned numerous other mortgages. The case is being prosecuted by Division Chief James O’Brien and Assistant Attorneys General Margaret Parks and Andrew Doherty, all parts of Attorney General Coakley’s Corruption and Fraud Division. The case is being investigated by members of the Massachusetts State Police assigned to the Attorney General’s Office as well as James McFadden of the Financial Investigation Unit.


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4 responses to Attorney Arraigned in Mortgage Hijacking Scheme

  1. tony hi would agree with you, this is fraud, i have also come across the same situation. i also live in sc and you are correct in saying no one will do any thing about this issue. i have seen that our justice system only works for certain people $$$$$$$$$$$, if you know what i mean. do not give up, someone somewhere will listen, it may take a while. i have found a mountain of the same thing. every one wonders how our econemy has gotten so bad, HELLO, open your eyes and stop turning your heads to corruption. drop me a email, would love to share some more information i have found. good luck.

  2. does anyone know what happened to Gelfgatt? did he have a court hearing already?

  3. Interthinx didn’t Mers just join with them against fraud, that is so funny that is another scheme and fraud.Look into Ocwen and anderson about the fraudulent signatures the illedgibile names from the notaries and Mers big check marks Everyone involved needs to go to jail, I have all the edivence just no-one with the balls to fight a corrupt system!!! I want Media exposure on these crooks.

  4. Upon futher investigation it seems that the Bank of New York Mellon is successor trustee for JP Morgan Chase as trustee for certificates holders of bear stearns asset backed securties,Inc. Asset backed certificates series2003-2,c/o EMC Mortgage corp it’s successors and assigns , all it’s rights, title interest in and to a certain mortgage, together with the note executed by……… to MERS acting solely as a nominee for RBMG. witnessed and signed by the famous scribble looking like a big U. By one and I believe I’ve seen that name on here before LIQUENDA ALLOTEY as VP !!!!! of MERS. He is also a forclosure specialist for fidility. HMMMM. Let’s see according to the Prospectus of the 2003-2 series we have some major fraud going on. Securities exchange commission needs to start a formal federal investigation. ALOT of BIG companies in volved in this. Can you Believe this anyone wanting to Bust all these people need to contact me. Criminal , fraud, Federal Agency I have it all. The assignment was executed an signed in MN. I live in SC and the bank is in NEW YORK

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