Archives For Stephanie Abbott

Osbado Hernandez, 54,  Avenel, New Jersey, a former Hudson County Sheriff’s Officer admitted conspiring to make false statements to a bank in connection with an application to discharge a mortgage through a fraudulent short sale.

According to documents filed in this case and statements made in court:

From September 2015 to Dec. 30, 2015, in order to induce a bank to discharge the mortgage he owed on his house in Keansburg, New Jersey, Hernandez agreed with others to make false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he did not intend to stay in the house for more than 90 days following the short sale. As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.

The false statements conspiracy charge is punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. Sentencing is scheduled for Oct. 4, 2023.

Hernandez pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on May 22, 2023, to an information charging him with one count of conspiracy to make false statements in connection with the release of a loan.

U.S. Attorney Sellinger credited special agents with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the guilty plea.

U.S. Attorney Philip R. Sellinger made the announcement.

The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit.

 

Ella Martin, 69, Jayess, Mississippi, pleaded guilty to conspiring to steal houses from the United States Department of Agriculture.

According to court documents, conspired with others to identify and steal USDA-mortgaged properties. The targeted properties were mortgaged through the Brookhaven office of USDA Rural Development, an agency which helps rural residents buy or rent safe, affordable housing, especially low and very-low income individuals. As an employee of that office, Martin had access to a list of abandoned, foreclosed, nearly-foreclosed, or similarly distressed USDA-mortgaged properties and would create fraudulent warranty deeds designed to convey ownership of those properties to co-conspirators and others. The fraudulent deeds included forged signatures from former homeowners, including at least one deceased individual. The fraudulent deeds were then filed in Chancery Courts around Mississippi with the intent to deprive the actual owners of the use and benefit of the properties and to deprive the United States Government of the actual value of the properties.

Martin pleaded guilty to a violation of Title 18, United States Code, Section 371, which criminalizes conspiracies against the laws of the United States. She is scheduled to be sentenced on September 19, 2023 and faces a maximum penalty of five years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Co-defendants Barry Martin and Fiesta Kagler entered guilty pleas last year and are scheduled to be sentenced on June 15, 2023.

The USDA OIG and the Federal Bureau of Investigation investigated the case.

U.S. Attorney Darren J. LaMarca and Special Agent in Charge Dax Roberson of United States Department of Agriculture, Office of the Inspector General made the announcement.

Assistant U.S. Attorney Kimberly T. Purdie is prosecuting the case.

 

Johnny Fior, 48, Cape Coral, Florida has been sentenced to 46 months in federal prison for wire fraud and illegal monetary transactions.

According to court documents, Fior committed the fraud by engaging in two different fraud schemes. With the first scheme, Fior convinced two individuals, by false and fraudulent pretenses, to serve as private investors/lenders for short-term balloon loans that were secured by mortgages on real properties in Lee County, Florida. To accomplish the scheme and give the investors the impression that their funded loans were secured by real property, Fior fraudulently filed fictitious mortgage deeds, promissory notes, and mortgage satisfactions. Additionally, Fior provided the investors interest-only payments to further delay repayment of the loans and requested loan repayment extensions to further prolong the scheme. Fior diverted the investors’ funds for his own personal use and none of the funds were used for their intended purpose.

In the second scheme, Fior, in his role as a real estate closing agent, diverted funds intended to be used to pay off property sellers’ existing mortgages to himself during real estate closings. In furtherance of the scheme, Fior created and caused the creation of real estate settlement statements that falsely represented a seller’s mortgage was repaid during the real estate closing process. Additionally, Fior created fake and fictitious bank statements, lender correspondence, wire transfer records, cashier’s checks, deposit records, and shipment records that fraudulently represented a seller’s mortgage had been paid or that the mortgage pay-off funds were submitted. As a result of the second scheme, two separate title insurance companies suffered a total loss of approximately $977,330.23.  

As part of his sentence, the court also entered an order of forfeiture in the amount of $1,404,169.74, which were the proceeds of the wire fraud and illegal monetary transaction offenses. Fior had pleaded guilty on January 18, 2023.

 This case was investigated by the FBI. It was prosecuted by Assistant United States Attorney Trent Reichling.

             David Maresca, 48, Manassas, Virginia, Scott Marinelli, 51,  Mountainside, New Jersey, Sam Babbs, III, 41, Orlando, Florida, and Terrylle Blackstone, 35, Woodbridge, Virginia, have been charged with conspiring to defraud thousands of distressed homeowners who thought they were hiring a legal firm to help them avoid foreclosure. The defendants, some of whom were licensed to practice law in Washington, D.C., New Jersey, and Florida, allegedly reaped millions of dollars in ill-gotten gains.

According to the indictment, the scheme involved marketing Synergy Law and Themis Law through telephone, television, and Internet advertising which told homeowners that attorneys could help them avoid foreclosure. The defendants, through the law firms, operated  call centers, where workers used scripts during calls with homeowners falsely promising that an attorney would review the homeowner’s case file; that this attorney knew their lender’s “internal guidelines,” for a “mortgage resolution”; and that an assigned “legal team” would contact the homeowner’s lender to negotiate a resolution.

The conspirators knew these representations were false and fraudulent. Synergy Law and Themis Law never operated a “national law firm,” and never provided legal services to homeowners. Neither Synergy Law nor Themis Law had attorneys review homeowner files, and neither Synergy Law nor Themis Law had attorneys contact a client’s lender to discuss a mortgage resolution. The homeowners signed agreements in which the law firms promised to provide “legal representation,” “attorney services” and “legal services” to the homeowner-client. Synergy Law required homeowner-clients to pay an initial retainer amount (often between $995 and $1,750), followed by a monthly recurring amount (often between $595 and $1,200), for as long as Synergy Law represented the homeowner. Once victim funds were in that account, Maresca, Marinelli, and Blackstone used the funds for their personal benefit, and continued to collect monthly payments from the clients. When the clients faced imminent foreclosure, Synergy Law provided non-legal bankruptcy petition preparation services and directed clients to file pro se bankruptcy petitions to stop foreclosure. Synergy Law directed clients not to disclose that the clients had worked with Synergy Law to prepare their bankruptcy petition. Themis Law clients, who were considering filing for bankruptcy to save their homes, were referred to Babbs Law where they signed a new retainer agreement and paid additional fees.

When bankruptcy judges, Synergy Law clients, and the U.S. Trustee’s Program raised concerns about Synergy Law’s practices in bankruptcy matters, Blackstone attended court hearings on behalf of Synergy Law and made false statements to the court about Synergy Law’s operations. When Marinelli’s law license was suspended in New Jersey in 2017, and the District of Columbia in 2018, Maresca, Marinelli, and Blackstone continued to operate Synergy Law and collect monthly payments purportedly for legal services.

Maresca is also charged with falsely filing for bankruptcy on behalf of Synergy Law.  According to the indictment, in answering a question on the bankruptcy forms about financial affairs, which required Synergy Law LLC to list transfers of money or other property that was not in the ordinary course of business, Maresca falsely stated “None,” when he knew he had withdrawn S315,083.42 from Synergy Law accounts to purchase his personal residence.

The indictment further charges Maresca, Marinelli, and Blackstone with five counts of mail fraud; Maresca, Babbs, and Blackstone with three counts of wire fraud and two counts of mail fraud; and Maresca with five counts of monetary transactions in criminally-derived property, and two counts of falsification of bankruptcy records. Maresca was arrested today and made an initial appearance in Washington, D.C.; Marinelli was arrested today and made an initial appearance in New Jersey.

The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office Criminal and Cyber Division, and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation (“IRS-CI”) Washington, D.C. Field Office.

Maresca formed Synergy Law LLC (“Synergy”), in Washington DC, in 2016, and Themis Law PLLC (“Themis”) in  2019. Marinelli, who was licensed in New Jersey, owned 10 percent of Synergy; Babbs, who was licensed in Florida and D.C., owned his own firm – Babbs Law Firm P.L. (“Babbs”) – and 10 percent of Themis. Blackstone worked for all three firms.

The U.S. Attorney’s Office and the FBI urge anyone who did business with these law firms, and who think they were defrauded, to visit https://www.justice.gov/usao-dc/mortgage-fraud and/or contact the Mega Victim Case Assistance Program (MCAP) at 1-844-527-5299. You can also send an email to USAEO.MCAP@usdoj.gov.

This case was investigated by the FBI Washington Field Office and the Washington, D.C. Field Office of the Internal Revenue Service – Criminal Investigations.

It is being prosecuted by Assistant United States Attorney John Borchert.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

Carol Bragdon, 49, Bangor, Maine, pleaded guilty today to wire fraud and making false statements to a mortgage lending business. She also pleaded guilty to a separate charge of making a false statement to a licensed firearms dealer.

According to court records, between November 2020 and April 2021, Bragdon, provided false statements and representations to a residential mortgage lender for the purpose of obtaining a U.S. Department of Veterans Affairs (VA) backed loan. She used Google email accounts to communicate with the lender and the VA and to transmit documentation as part of the scheme. The emails were transmitted from Maine to another state.

In August 2021, Bragdon purchased five firearms at Maine Military Supply in Brewer, falsely stating that she was the actual purchaser of the firearms. She was accompanied by an individual who directed her to specific firearms and who was later arrested with one of the firearms, a Walther model PK380 .380 caliber pistol. That individual was prohibited from purchasing a firearm under federal law.

Straw purchasing typically involves a buyer who can lawfully purchase firearms but who then provides them to another person who is legally prohibited from purchasing or possessing firearms, therefore allowing the prohibited person to illegally obtain firearms and avoid the national background check system.

Bragdon faces up to 30 years in prison and up to five years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Omayra Ujaque ,52, St. Cloud, Florida, has been found guilty of three counts of bank fraud and one count of aggravated identity theft.

According to evidence presented at trial, Ujaque, in her capacity as a licensed mortgage loan officer, created and executed a mortgage fraud scheme targeting the financial institution where she worked. To ensure that otherwise unqualified borrowers were approved for mortgage loans, Ujaque falsified the borrowers’ income by fabricating or inflating the amounts of their monthly child support payments on mortgage loan applications that she signed and certified to the financial institution’s underwriting department. In furtherance of her scheme, Ujaque created fictitious Final Judgments of Dissolution of Marriage and Final Orders Modifying Child Support that fraudulently represented that the borrowers were entitled to receive non-existent monthly child support payments. Ujaque then used the names of judges from the Circuit Court of the Ninth District of Florida and forged their signatures on the fabricated Final Judgments of Dissolution of Marriage or Final Orders Modifying Child Support.

Ujaque also created bogus Florida Department of Revenue Statements listing fraudulent monthly child support payments, as well as phony prepaid debit card statements listing fake borrower withdrawals of the non-existent monthly child support payments. In most cases, the borrowers did not, in fact, have the listed children and/or had never been married. Ujaque submitted bogus paperwork to the financial institution to support the false monthly income on the loan applications. Based on Ujaque’s misrepresentations, the financial institution approved and funded the mortgage loans.

Ujaque faces a maximum penalty of 30 years’ imprisonment for each bank fraud count and a mandatory 2-year sentence for the aggravated identity theft county. Her sentencing hearing is scheduled for July 5, 2023. Ujaque had been indicted on February 15, 2023.

This case was investigated by Federal Housing Finance Agency – Office of Inspector General, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Florida Office of Financial Regulation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

 

Cameron Porter, 35, Plant City, Florida, has been sentenced to three years and one month in federal prison for conspiracy to commit bank fraud.

According to court documents, in March 2019, Porter conspired with Christopher Alholm and others to defraud an FDIC insured bank (“Bank 1”) with branches located throughout the Middle District of Florida. Bank 1 was a member institution of the Federal Home Loan Bank of Atlanta. During the conspiracy, Porter obtained a victim bank customer’s (“Customer 1”) stolen Home Equity Line of Credit (“HELOC”) account number and personally identifying information (“PII”), including name, signature, date of birth and Social Security number from a co-conspirator, and passed that information to Alholm. Alholm subsequently used the stolen PII and impersonated Customer 1 at a Bank 1 branch located in Spring Hill to conduct a fraudulent $495,000 advance of funds from the Customer 1’s HELOC account to an intermediary account at Bank 1. After Alholm had completed the fraudulent advance of funds, another conspirator subsequently wired the stolen HELOC funds from the intermediary account to offshore bank accounts. Porter then received a share of the stolen proceeds for his role in the conspiracy.

Alholm previously pleaded guilty to his role in this case. In November 2022, he was sentenced to five years and six months in federal prison for conspiracy to commit bank fraud and aggravated identity theft.

As part of his sentence, the court also entered an order of forfeiture in the amount of $5,000, the proceeds of the charged criminal conduct. Porter had pleaded guilty on guilty on January 9, 2023.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and Florida Department of Law Enforcement. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

 

Lee Ann Benninghoff,  44, Aliquippa, Pennsylvania, pleaded guilty in federal court to charges of bank fraud and conspiracy.

In connection with the guilty plea, the court was advised that Benninghoff owned and operated Complete Escrow and Bella Casa Realty. From February 2014 through March 2017, Benninghoff used her position and connections in real estate financing, and conspired with others in the industry, to submit fraudulent gift letters in support of mortgage loan applications The gift letters misrepresented the source of the funds and their purported purpose.

Benninghoff, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.

Judge Horan scheduled sentencing for July 12, 2023, at 9 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Acting United States Attorney Troy Rivetti made the announcement.

Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.

The Federal Housing Finance Agency Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the U.S. Secret Service conducted the investigation that led to the prosecution of Benninghoff.

 

David Plunkett, 57, Lynn, Massachusetts, was sentenced today in federal court in Boston for creating fraudulent tax returns and submitting fraudulent letters to lenders in a multi-year mortgage fraud scheme.

Plunkett was charged in September 2018 along with co-defendants Joseph Bates III and George Kritopoulos.  From 2006 through 2015, Bates, Kritopoulos and Plunkett engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem, Massachusetts. The properties were usually multi-family buildings with two-to-four units, which Kritopoulos and Bates then converted into condominiums. Kritopoulos recruited new borrowers to purchase the individual condominium units. Kritopoulos also recruited Plunkett to prepare false tax returns in the names of the buyers to support the fraud scheme. Together, Kritopoulos and Bates created other false documents and provided them to lenders to obtain fraudulent mortgages for financing the purchases.

The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies “owned” by Kritopoulos and were used to advance the fraudulent scheme. The employment information also included false representations about the income that the borrowers received from the entities, when the borrowers actually received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when they did not intend to do so.

Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications. Plunkett also signed letters falsely representing that his CPA firm had prepared corporate tax returns for one of the shell entities, when in fact no such returns had ever been prepared or filed.

The borrowers did not have the financial ability to repay the loans, therefore in all but two instances among 21 properties, they defaulted on their loan payments, resulting in foreclosures and losses to the lenders.

Plunkett was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately one day in prison) and three years of supervised release. Plunkett was also ordered to pay $147,500 in restitution to victims and $64,284 in restitution to the Internal Revenue Service. In February 2019, Plunkett pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns.

In October 2022, Kritopoulos was sentenced to four years in prison and two years of supervised release after being convicted by a federal jury of one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return and one count of obstruction of justice. Kritopoulos was also ordered to pay restitution to lender victims in the amount of $2,238,354 and forfeiture of $700,000. On Jan. 25, 2023, Bates was sentenced to 18 months in prison and three years of supervised release after previously pleading guilty to one count of conspiracy, three counts of wire fraud affecting a financial institution and two counts of bank fraud. Bates was also ordered to pay restitution in the amount of $2,238,354 and forfeiture of $700,000.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Victor A. Wild, of Rollins’ Securities, Financial & Cyber Fraud Unit and Brian M. LaMacchia, of Rollins’ Affirmative Civil Enforcement Unit prosecuted the case.

 

Joseph Bates III, 42, Wakefield, Massachusetts, was sentenced today in federal court in Boston for a mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.

Bates was originally charged in September 2018 along with co-defendants George Kritopoulos and David Plunkett.  From 2006 through 2015, Bates, Kritopoulos and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem, Mass. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. Kritopoulos recruited new borrowers to purchase the individual condominium units. Together, Kritopoulos and Bates created and provided false documents to defraud lenders for financing the purchases. Kritopoulos also recruited Plunkett to prepare false tax returns in support of the fraud scheme.

The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies “owned” by Kritopoulos and were used to advance the fraudulent scheme. The employment information also included false representations about the income that the borrowers received from the entities, when the borrowers actually received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when they did not intend to do so. Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.

Because the borrowers did not have the financial ability to repay the loans, in all but two instances among 21 properties, they defaulted on their loan payments, resulting in foreclosures and losses to the lenders.

Bates was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 18 months in prison and three years of supervised release. In October 2018, Bates pleaded guilty to one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. Bates was also ordered to pay restitution in the amount of $2,238,354 and forfeiture of $700,000.

In October 2022, Kritopoulos was sentenced to four years in prison and two years of supervised release after being convicted by a federal jury of one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return and one count of obstruction of justice. In February 2019, Plunkett pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns and is scheduled to be sentenced on Feb. 9, 2023.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division, Boston Office; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office made the announcement today. Valuable assistance was provided by the Salem Police Department. Assistant U.S. Attorneys Victor A. Wild, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Brian M. LaMacchia, of Rollins’ Affirmative Civil Enforcement Unit prosecuted the case. Assistant U.S. Attorney Carol Head, Chief of Rollins’ Asset Recovery Unit, is handling the forfeiture and restitution aspects of the case.