Archives For Mortgage Fraud

Zina Thomas, 60, Detroit, Michigan, was charged in a criminal complaint filed in United States District Court for her role orchestrating a fraud scheme that stole houses from dozens of Detroit residents.

The complaint charges Thomas with conspiracy to commit wire fraud, wire fraud, money laundering, and aggravated identity theft. Thomas was arrested today.

According to the complaint, Thomas, while serving as the Director of Homeownership Programs for the United Community Housing Coalition (UCHC), conspired with other individuals to steal over 30 properties across Wayne County, predominately located in the City of Detroit.  The complaint alleges that Thomas and others perpetrated a scheme to defraud by filing multiple fraudulent quitclaim deeds, frequently transferring the target properties from the victim-owners to non-existent “interim owners” before ultimately selling the properties to unwitting third parties.  It is also alleged that these fraudulent deeds were falsely notarized by Thomas or another person, which made them appear legitimate and thus enabled them to be filed with the Register of Deeds. The complaint also alleges that Thomas emailed a Wayne County Treasurer’s Office employee fake driver’s licenses and other documents, which were then uploaded into the Treasurer’s Property Tax Administration system to halt pending foreclosures.  According to the complaint, Thomas received payment for at least some of the properties via wire transfer into a bank account in the name of her realty company, and Thomas then transferred proceeds from that account to her personal bank account. And the scheme targeted low-income individuals who were facing potential tax foreclosure. According to the complaint, Thomas currently resides in one of the properties involved in the scheme.

The United Community Housing Coalition (UCHC), is a 501(c)(3) nonprofit organization providing housing assistance to Detroit’s low-income residents.  The UCHC and its executive leadership cooperated with the investigation.

United States Attorney Dawn N. Ison made the announcement.

Ison was joined in the announcement by Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation; Special Agent-in-Charge Machelle L. Jindra, Department of Housing and Urban Development Office of Inspector General; Detroit Police Chief James E. White; and Wayne County Register of Deeds Bernard J. Youngblood.

United States Attorney Ison stated, “This scheme targeted some of our most financially vulnerable citizens and was perpetrated by an individual whose job it was to help those very people avoid losing their homes to foreclosure. This arrest is the result of a multi-agency, cooperative investigation involving both federal and state law enforcement, and is reflective of our ongoing efforts to identify and disrupt fraud schemes like this as quickly as possible.”

While working in a capacity to provide assistance to residents experiencing financial hardships, Ms. Thomas allegedly exploited individuals in the process of losing their homes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI and its law enforcement partners will continue to investigate these reprehensible acts of fraud.

Thomas allegedly abused her position to help fraudulently sell properties facing tax foreclosure for her own personal gain,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development Office of Inspector General.  “HUD OIG will continue to work with its law enforcement partners to bring bad actors to justice and protect the integrity of HUD housing programs.”

I want to thank U.S. Attorney Dawn N. Ison for her continued collaboration to ensure that those who victimize Detroit residents face the fullest consequences of the law,” said Detroit Police Chief James E. White. “The DPD remains committed to addressing all aspects of crime and working with our partners across law enforcement to keep Detroiters safe.”

A rash of incoming complaints to my Deed Fraud Task Force, followed with methodical investigative teamwork, culminated in today’s announcement,” said Wayne County Register of Deeds Bernard J. Youngblood.  “Wayne County is the national leader in combating this new crimewave and we are proud to partner with local, state and federal law enforcement to protect the property rights of our citizens.”

A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.

This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development Office of the Inspector General, and the Detroit Police Department.  Significant investigative assistance was provided by the Wayne County Register of Deeds’ Mortgage & Deed Fraud Unit.  The case is being prosecuted by Assistant United States Attorney Ryan A. Particka.

 

Roscoe Copeland, 49, Detroit, Michigan, was sentenced yesterday to six years in prison for fraudulently conspiring to obtain over $650,000 in advance fees from borrowers seeking real estate loans.

According to court documents, Copeland, was the founder and CEO of Alexis Realty Solutions LLC (ARS), which purported to be an alternative funding source for prospective borrowers seeking loans for real estate purchases. ARS catered to customers who had poor credit ratings or were otherwise unable to qualify for a loan from retail banks or other traditional funding sources. ARS offered unrealistically competitive interest rates to their customers, including as low as 1% for a traditional 30-year fixed mortgage.

Copeland and his co-defendant, Dawnn Long, ARS’s chief operating officer, claimed that ARS was a private lender with no “middleman,” and that the company had access to specialized bond funding at discounted rates. As part of the fraudulent scheme, prospective borrowers paid ARS an upfront fee, typically 3% of the loan amount, to purportedly secure a bond necessary to obtain the loan. Copeland and Long also recruited individuals known as “consultants,” many of whom were real estate brokers or agents, to find prospective borrowers and direct them to ARS. Consultants were told that ARS would pay them a percentage of ARS’s proceeds after the loans were funded.

During the conspiracy, which lasted from approximately January 2017 to January 2018, Copeland and Long knowingly made repeated false statements to both prospective borrowers and consultants. These misrepresentations included that: (1) the advance fees paid by customers would be held in escrow; (2) the customers’ advance fees would be repaid in full if their loans did not fund within a set period; and (3) ARS was a private lender with no middleman.

In fact, not a single customer of ARS received a loan. Twenty-six prospective borrowers sent Copeland and Long over $650,000 in advance fees, the vast majority of which Copeland and Long spent on lavish personal expenses. Many of the victims suffered substantial financial hardship, including filing for bankruptcy, periods of homelessness, or delaying retirement, as a result of Copeland’s fraud scheme.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.

Assistant U.S. Attorneys Brian Hood and Kenneth R. Simon, Jr. prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-152.

Jeffrey M. Young-Bey, 67, Washington, D.C was found guilty today on twelve federal charges stemming from a scheme in which he used a fake notary stamp, forged signatures, and fraudulent property deeds to steal residential real estate property. The scheme generated more than $850,000 in fraudulent loans obtained through mortgages taken out against the value of the stolen real estate.

According to the government’s evidence, beginning in November 2019, Young-Bey conspired to steal a residential townhome located in LeDroit Park in order to obtain mortgage financing against the stolen property. Specifically, Young-Bey identified a target property owned free and clear by an elderly homeowner located in the District. Young-Bey then prepared a fraudulent property deed, including forged signatures of the true owners and used a fake notary stamp to make the deed appear legitimate. Young-Bey filed the deed with the District of Columbia Recorder of Deeds, transferring the title from the true owners to a corporate entity. Young-Bey passed a check to the D.C. Recorder of Deeds to pay for the transfer taxes but put a stop payment order on the check before the D.C. government could cash the check.  Young-Bey caused the fake deed to be recorded with the D.C. Recorder of Deeds and then falsely told a mortgage services business that another individual had inherited the property and wanted to take a large loan against the value of the home. Young-Bey created a fake rental lease on Rocketlawyer.com and sent the lease to the mortgage company to convince them that his associate owned the home and rented the property for profit. The mortgage company was deceived into loaning Young-Bey’s associate approximately $360,000 against the value of the home they did not own, which was split evenly between the two. Young-Bey used his half of the proceeds to buy a BMW 3-Series valued at approximately $23,000.

After succeeding on the first scam, Young-Bey executed a second fraudulent scheme on a Shephard Park property in the District, forging the names of the two owners, using the fake notary stamp, and recording the deed at the D.C. Recorder of Deeds Office. Young-Bey again put a stop payment order on the transfer tax check before it could be cashed. Young-Bey used the recorded deed to obtain a construction loan in excess of $500,000 against the value of the house.  Young-Bey took a portion of the loan and purchased a BMW 7-Series worth approximately $120,000. He promptly sold the home to a legitimate real estate company for an additional $42,000 in profit. The fraud was discovered when the real estate company began performing renovations on the home and the rightful owners were alerted to the construction and demolition by their neighbors.

The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the FBI Washington Field Office’s Criminal and Cyber Division.

Young-Bey was found guilty before the Honorable Colleen Kollar-Kotelly on one count of conspiracy to commit mail fraud and bank fraud, two counts of bank fraud, two counts of mail fraud, two counts of money laundering, and five counts of aggravated identity theft. A sentencing date is pending. Young-Bey’s conspiracy and fraud convictions carry a maximum sentence of 20 years in prison. The money laundering counts carry a maximum sentence of 10 years. The aggravated identity theft charges call for a mandatory sentence of two years in prison.

This case was investigated by the FBI’s Washington Field Office with assistance from the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorneys Christopher R. Howland and Kevin L. Rosenberg of the Fraud, Public Corruption, and Civil Rights Section with the assistance of Paralegal Specialist Gina Torres. Valuable assistance was provided by Assistant U.S. Attorney Joshua S. Rothstein, former Assistant U.S. Attorney Virginia Cheatham, former Special Assistant U.S. Attorney Viviana Vasiu, and Paralegal Specialist Lisa Abbe who investigated the case. The prosecution team was also assisted by Tonya Jones from the Victim Witness Assistance Unit and Assistant U.S. Attorney Daniel Lenerz from the Appellate Section.

Marat Lerner, 41, Brooklyn, New York, the former president of a debt relief services business, pleaded guilty today to one count of wire fraud conspiracy and one count of committing wire fraud while he was on pre-trial release.  Lerner admitted that he lied to his victims and that he stole money that the victims had intended to use to pay off their home mortgages.  

According to court documents and facts presented at the guilty plea proceeding, Lerner was the owner of the “Lerner Group,” a business that claimed to provide debt relief services, including mortgage modifications, principally to the Eastern European immigrant community in Brooklyn.  Many of the victims that the defendant defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments.  Lerner, in turn, promised that he could help them lower their monthly mortgage payments by working with their mortgage lenders to secure a mortgage loan modification or federal homeowner assistance.  To carry out his fraud, Lerner instructed the victims that he needed access to their bank accounts so that he could directly transmit payments to the mortgage banks on the victims’ behalf, and that the payments would be addressed to either an escrow agent that would hold the funds until their mortgages had been modified, or to entities affiliated with their mortgage lenders.  Lerner further instructed the victims not to contact their mortgage lenders directly and that he would serve as the liaison between the victims and the victims’ lenders.    

In reality, Lerner stole over $2.5 million from the victims – money that the victims had intended to use to pay their mortgages.  Once Lerner gained access to the victims’ bank accounts, Lerner transmitted funds from their accounts to companies and/or bank accounts that he himself controlled.  Lerner kept the majority of the victims’ money, spending it on personal and business expenses, including a BMW, luxury goods, and expensive meals.  To conceal his fraud, Lerner told the victims to disregard notifications from their mortgage lenders regarding delinquent payments and past due balances.  

In January 2023, Lerner was indicted by a federal grand jury in the Eastern District of New York and arrested in connection with the above fraud.  Pursuant to an order of the United States District Court for the Eastern District of New York, Lerner was released on bail and instructed, among other things, not to commit additional crimes.  However, Lerner continued to steal from his victims even after being arrested for the same conduct.  After his arrest in this case, between January 2023 and May 2023, Lerner stole at least $10,000 from his victims.  Lerner’s bail was subsequently revoked. 

As a result of Lerner’s years-long fraud, mortgage lenders have initiated foreclosure proceedings against several of the victims.  As part of his guilty plea, Lerner has agreed to pay approximately $2,554,217.11 in restitution to the victims. 

The proceeding was held before United States District Judge Nicholas G. Garaufis.  When sentenced, Lerner faces a maximum sentence of 50 years’ imprisonment.  Lerner has also agreed to pay $2,554,217.11 in restitution.   He was indicted in January 2023.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Internal Revenue Service – Criminal Investigations (IRS CI), announced the guilty plea.

As he admitted today, Marat Lerner turned the victims’ American dreams into a nightmare by promising mortgage and debt relief, and instead preyed on their hard-earned life savings for his own personal gain,” stated United States Attorney Peace. “My Office will continue to protect immigrant communities against those who choose to use their positions of trust to defraud and steal from them.

Marat Lerner operated as an underground broker in his local community; but instead of completing his end of the bargain by paying their mortgages, he pocketed the money of his unsuspecting victims to live a life of luxury. This wasn’t just a money scam, this fraud affected his own community’s homes and families.  Those who fell prey to Lerner’s deceit defaulted on their mortgage payments, and some fell into foreclosure.  Today’s guilty plea and agreed restitution is just one step towards his victims getting justice, and his sentencing is the next,” stated IRS CI Special Agent-in-Charge Fattorusso.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.   Assistant United States Attorneys Nicholas Axelrod and Genny Ngai are prosecuting the case with assistance from Paralegal Specialist Jacob Menz.

Marilyn J. Mosby, 44, Baltimore, Maryland, was convicted today for making a false mortgage application when she was Baltimore City State’s Attorney, relating to the purchase of a condominium in Long Boat Key, Florida.  The jury acquitted her of making a false mortgage application related to her purchase of a home in Kissimmee, Florida.

According to the evidence presented at trial, in February 2021, Mosby made a false statement in an application for a $428,400 mortgage to purchase a condominium in Long Boat Key, Florida.  As part of the application, Mosby falsely stated that she had received a $5,000 gift from her husband to be applied to the purchase of the property.  According to the evidence presented at trial, Mosby made this statement in order to secure a lower interest rate. According to the evidence presented at trial, Mosby did not receive a $5,000 gift from her husband, but rather transferred $5,000 to him, and he then transferred the $5,000 back to her.

Mosby faces a maximum of 30 years in federal prison for making a false mortgage application. 

On November 9, 2023, Mosby was previously convicted on two counts of perjury, relating to the withdrawal of funds from the City of Baltimore’s Deferred Compensation Plan claiming that she suffered adverse financial consequences during the COVID-19 pandemic while she was Baltimore City State’s Attorney.  Mosby faces a maximum sentence of five years in federal prison for each of the two counts of perjury. 

The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office.

U.S. Attorney Erek L. Barron said, “We humbly respect the court’s considered rulings, opposing counsels’ zealous advocacy, and the wisdom of both jury verdicts in this case and we remain focused on our mission to uphold the rule of law.

Ms. Mosby’s conduct undermines the confidence the public deserves to have in their government officials,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI’s Baltimore Field Office. “The jury’s decision holds Ms. Mosby accountable for disregarding the laws she swore to uphold. The FBI works diligently to ensure that anyone who engages in fraud and corruption will be held accountable for their bad acts.

U.S. District Judge Lydia K. Griggsby has not yet scheduled a sentencing date in either of Mosby’s pending federal cases.

U.S. Attorney Erek L. Barron commended the FBI and IRS-CI agents for their work in the investigation and thanked the Baltimore City Office of the Inspector General for its assistance.  Mr. Barron praised Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, for their focus and hard work throughout the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

Nathaniel Anderson, 56, Willingboro Township, New Jersey, a town councilman and the deputy mayor of Willingboro in Burlington County, New Jersey, and his business associate Chrisone D. Anderson, 56, Sicklerville, New Jersey, were charged with conducting a scheme to discharge the deputy mayor’s mortgage obligation on his property through a fraudulent short sale.

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

From March 2015 through June 2017, Nathaniel Anderson and Chrisone D. Anderson conspired and agreed with one another to orchestrate a fraudulent short sale of a property in Willingboro from Nathaniel Anderson to Chrisone D. Anderson.

As part of the conspiracy to defraud a government sponsored enterprise to discharge a mortgage obligation on Nathaniel Anderson’s property in Willingboro and to induce a mortgage lending business to issue a new mortgage on the property, Chrisone D. Anderson executed – and Nathaniel D. Anderson aided and abetted the execution of – mortgage documents containing materially false representations. These included that the short sale was an arm’s length transaction, that Chrisone D. Anderson did not have a prior business relationship with Nathaniel Anderson, that Nathaniel Anderson would not continue to occupy the property as his residence following the short sale, and that Chrisone D. Anderson would occupy the property as her primary residence.

As a result of the fraudulent short sale, the government sponsored enterprise discharged Nathaniel Anderson’s mortgage obligation and suffered a loss of over $120,000, and the victim lender issued a new mortgage on the property. During a May 2022 interview, Chrisone D. Anderson made false statements to an agent of the FBI concerning the short sale.

The charges of conspiracy to commit wire fraud affecting a financial institution, bank fraud, and making false statements on a loan application are each punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. The charges of making false statements to a federal agent are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000.

Additionally, Chrisone D. Anderson is charged with two counts of making false statements to a federal agent. Nathaniel Anderson and Chrisone D. Anderson made their initial appearances today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were released on $50,000 each unsecured bond.

U.S. Attorney Sellinger made the announcement.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Northeast Region of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton, working in conjunction with the Special Prosecutions Division in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Cabral Simpson, 47, Orange, New Jersey, was sentenced today to time already served, 20 months, for conspiring to commit mortgage fraud.

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

Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They also induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in losses.

In addition to the prison term, Judge Neals sentenced Simpson to two years of supervised release and ordered restitution of $1.29 million.

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

U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Janine Rocheleau in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.

 

Noreen Khan aka Noreen Khan-Mayberry, 50, and her husband Christopher Mayberry, 51, Missouri City, Missouri have been indicted for orchestrating a fraudulent financing and refinancing mortgage loan scheme.

According to the indictment, returned December 12, 2023, both are charged with one count of conspiracy to make false statements to mortgage loan businesses.

Beginning in 2016, Mayberry and Khan, while still employed at NASA, allegedly took out significant personal loans to fund the purchase of their luxury home before quickly defaulting on those loans. 

According to the charges, the couple allegedly attempted to eliminate and dispute the debts, claiming to be victims of identity theft. Khan allegedly filed a false police report, submitted a false report to the Federal Trade Commission and sent letters to the credit bureaus in order to have the loans removed from her credit. 

As part of the scheme, the couple allegedly signed three separate loan agreements with mortgage lenders related to the financing of their home from 2017 to 2021. 

As part of the loan application process, the couple provided false employment information and fake documents which included pay stubs, tax forms and account statements to lenders, according to the charges.

The Couple surrendered to federal authorities this morning. They are expected to make their initial appearances before U.S. Magistrate Judge Yvonne Ho at 2 p.m.

U.S. Attorney Alamdar S. Hamdani made the announcement.

 

If convicted, they face up to five years in federal prison and a possible $250,000 maximum fine in addition to the possible forfeiture of their luxury home.

NASA’s Office of Inspector General-Office of Investigations conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case. 

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Russell Carbone, 69, Queens, New York, and Terrell Hill, 40, Long Island, New York, pleaded guilty to a wide-ranging scheme to steal residential properties by filing forged deeds with city officials.

Carbone and Hill, pleaded guilty to scheme to defraud in the first degree and six counts of offering a false instrument for filing in the first degree. RC Couture Realty Inc., a corporation run by Carbone and his wife, Galyna Couture, 61, pleaded guilty to criminal possession of stolen property in the first degree and six counts of offering a false instrument for filing in the first degree.

Carbone and Hill worked together to target homes where the owners died and their heirs had not taken title to them. To help find the properties, Hill, a landscaper, would alert Carbone, a disbarred attorney, to homes that appeared abandoned. Most turned out to have gone into foreclosure.

As part of the plea, the court voided deeds to seven homes in Queens and two in Nassau County, New York so they could be returned to their rightful owners.

In addition to forfeiting the ill-gotten deeds, Carbone will pay $56,960 in restitution. The money represents rent payments he collected after illegally taking over properties and leasing them out. The money will go to the heirs of the legitimate property owners. Carbone’s license as a notary was also revoked.

R.C. Couture Realty must pay a $100,000 fine.

Hill is also expected to face up to three years in prison when he is sentenced on January 30, 2024.

The Queens homes stolen were located on 116th Road, 115th Avenue, 148th Street and 192nd Street in Jamaica; on 131st Avenue in Laurelton Gardens; and on 104th Avenue and 192nd Street in St. Albans.

In Nassau County, the homes were on Pinebrook Avenue in West Hempstead and Advent Street in Westbury.

In some instances, the deeds were transferred more than once among the defendants and entities connected to them, resulting in 14 deeds for nine homes.

In two additional cases that were part of the charged scheme to defraud, Carbone and Hill had already agreed to relinquish deeds to the legitimate owners.

And in another case, the duo had already sold a home on 148th Street in Jamaica to a third party. The District Attorney’s office will file a motion to apply a state statute and restore that deed to its rightful owner, sparing the victim the time and expense of additional legal proceedings in civil court.

According to the charges and plea agreements:

  • Between November 8, 2019, and February 14, 2023, Hill and Carbone forged signatures on property records to transfer to themselves the ownership of multiple properties.
  • The signatures were notarized with fraudulent notary stamps that Hill ordered from Amazon in the names of actual notaries. Carbone also used his own, legitimate notary stamp on some documents.
  • The fraudulent documents were filed with the New York City Department of Finance.

In the case of the home on 116th Road in Jamaica, Hill called a Bronx woman in November 2019 about possibly selling the house, which she had inherited with her brother. Following the phone conversation, Hill introduced the victim to his “business partner,” Carbone, who met the woman at a local coffee shop to discuss the sale. The woman declined the purchase offer.

A deed transferring title to the property was filed nonetheless on March 12, 2021, indicating that RC Couture Realty, Inc. and Terrell Hill each owned a 48% interest in the property and the victim and her sibling each owned a 1% share.

Hill and Carbone forged the siblings’ signatures on the deed transfer documents, which were stamped with a fraudulent notary stamp and Carbone’s legitimate stamp.

The actual notary told investigators that the stamp was not hers. Hill’s Amazon records showed he ordered a notary stamp with this notary’s information and had it shipped to his home in West Hempstead.

In another case, a 2021 deed transfer for a home on Sutter Avenue in Jamaica included the purported signature of an heir to the property’s original owner. The document said the home was transferred to Carbone and Hill with the heir retaining 1% ownership.

The heir said he did not sign the document. The notary whose stamp is on the paperwork also said he did not sign, nor stamp, the document. Hill’s Amazon records showed another purchase shipped to his home in West Hempstead for a notary stamp with this notary’s information as well.

A nephew of the property’s original owner was living in the home and Carbone wrote to him, portraying himself as the new owner trying to “make a deal” to get him to leave. Carbone then started eviction proceedings against him.

Facing a civil lawsuit, Hill and Carbone agreed to void the deed, returning the home to the rightful owner.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said: “When I started the Housing and Worker Protection Bureau three years ago, I promised to protect homeowners from predatory real estate scams that often target vulnerable neighborhoods. Since then, we have undone the criminal handiwork of scammers and con artists and pioneered the use of a state statute to return stolen properties to their rightful owners. With the conclusion of this prosecution, the largest we have undertaken so far, our office will have restored a total of 14 homes to their rightful owners.”

Assistant District Attorney Rachel Stein, Chief of the Real Estate Theft Unit, in the District Attorney’s Housing and Worker Protection Bureau prosecuted the case under the supervision of Assistant District Attorneys William Jorgenson, Bureau Chief, and Christina Hanophy, Deputy Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

David Izsak, 48, Chicago, Illinois, a licensed real estate professional and the sole proprietor of Premier Assets Inc. and Premier Properties Enterprises, Inc., was convicted of scheming to defraud multiple financial institutions out of $4 million.

From 2005 to 2018, Izsak engaged in a scheme to defraud financial institutions by obtaining residential loans through false statements, concealing the existence of unpaid loans, and falsely obtaining credit.  As part of the scheme, Izsak submitted or caused to be submitted to the Cook County Recorder of Deeds fictitious lien releases.  In reality, the releases were not from the lender and the loans were not paid in full.  In one instance, after causing a lien to be released, Izsak sold the property to an unsuspecting buyer.  In another instance, he obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it.  Izsak also obtained a loan to buy a 57-foot yacht known as the “Flying Lady” by submitting fraudulent tax returns and financial information to the lender.  The yacht was seized in 2019 by federal authorities.

After a week-long trial in U.S. District Court in Chicago, the jury on Friday convicted Izsak on ten counts of financial institution fraud, each of which is punishable by up to 30 years in federal prison.  U.S. District Judge Manish S. Shah set sentencing for July 9, 2024.  The government at sentencing will seek forfeiture from Izsak of approximately $4 million.

The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the FBI Chicago Field Office, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.    The government is represented by Assistant U.S. Attorneys Patrick J. King, Jr., and Elly M. Peirson.