Dr. Timothy E. O’Brien, 55, South Kingstown, Rhode Island, and Eugene L. O’Brien, 50, Westport, Massachusetts, two brothers allegedly involved in a $2,280,000 mortgage fraud schem, have been arrested.
In August 2010, members of the Rhode Island State Police received information of a mortgage fraud scheme perpetrated by the defendants. During an extensive one and one-half (1 Â½) year investigation, State Police detectives revealed that the O’Brien brothers purchased the home and property located at 375 Ocean Road, Narragansett, RI, at an over-inflated price. As a result of this mortgage fraud, both Timothy and Eugene O’Brien were charged with 1) Obtaining Money under False Pretenses over $500 ($2,280,000), 2) Conspiracy to Obtain Money under False Pretenses, and 3) Money Laundering.
The investigation revealed that on September 11, 2006, Timothy and Eugene O’Brien had purchased the property for $2,400,000, when it was appraised at $910,000 and during a time when real estate prices in Rhode Island were declining. Land evidence records obtained from the Town of Narragansett revealed that on May 24, 2010, this property was foreclosed for $850,000 and later sold to an investor for $610,000. It was also learned that during November and December of 2006, Eugene O’Brien purchased three (3) properties and refinanced on the Ocean Road property without disclosing these fast occurring liabilities on his respective loan applications.
Due to these misrepresentations, Eugene O’Brien fraudulently obtained approximately $3,496,000 of mortgage loans that resulted in over $2,180,900 in losses, not including unpaid city and town property taxes, lost interest payments, foreclosure costs and legal fees.
Detectives obtained closing documents from a law office involved in the purchase of 375 Ocean Road through a court-authorized search warrant. These documents revealed that on September 11, 2006, the financing for this purchase was obtained through Coastway Credit.
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Commissioner of the Department of Public Safety announced the arrests.