William M. Silvi, 43, Colorado was indicted for wire fraud , mail fraud, and money laundering, along with a forfeiture indictment, related to a mortgage fraud scheme.
Silvi is currently in custody in New Jersey pending trial for murder, but lived in Colorado Springs during the time of the offenses charged in the indictment. Arrangements are pending regarding his initial appearance in U.S. District Court in Denver, Colorado where he will be advised of the charges pending against him.
According to the information contained in the indictment, beginning in March 2005, and continuing until January 2008, Silvi devised a scheme to defraud various financial institutions and commercial lenders to obtain money and property. The scheme was executed in connection with the residential mortgage loans related to 11 properties in Colorado listed below, some of which were bought and sold multiple times during the scheme.
The scheme was also executed in connection with both of the transactions to refinance the residential mortgage loans related to the property listed as 3725 Twisted Oak Circle, Colorado Springs, Colorado.
It was also part of the scheme that between March 2005 and January 2008, Silvi would find people he knew to purchase residential properties. In order to purchase these residential properties, the buyers applied to various financial institutions and commercial lenders for mortgage loans. In order to qualify each buyer for the mortgage loans needed to purchase these residential properties, Silvi made false statements on the Uniform Residential Loan Applications (“URLA”) and in the supporting documentation, including: (1) inflating or fabricating the employment income, rental income, and/or assets of the buyer; (2) providing a false IRS Form W-2 and/or paycheck stub for the buyer; (3) false verifications of rent for the buyer; and (4) falsely stating that the property would be a primary residence for the buyer.
Oftentimes, the residential properties purchased by the buyers were being sold by other people whom Silvi knew well. As part of the transactions for these property purchases, Silvi and the property seller inflated the sale price of the property so that Silvi would receive the inflated portion of the sale price at, or shortly after, the closing of the purchase transaction. This money was usually paid to the seller at the closing of the purchase transaction; however, the seller would then pay Silvi from the disbursement funds. These disbursements to Silvi were not disclosed on the HUD-1 Settlement Statement.
Silvi also refinanced the mortgages on the Twisted Oak property, under the name of A.K., so that he could obtain additional money as a result of the refinance transaction. In order to qualify A.K. for the refinancing of the mortgages, Silvi made at least one materially false statement on those URLAs as well.
In furtherance of the scheme, interstate wires were used to send the funds for the mortgage loans, and at least one commercial interstate carrier was used to mail the URLAs, the executed closing documents, and some disbursement checks.
Silvi also engaged in money laundering transactions in criminally derived property of a value greater than $10,000, the property having been derived from wire fraud. The indictment also includes a forfeiture provision.
United States Attorney David Gaouette, and IRS Criminal Investigation, Special Agent in Charge Christopher M. Sigerson made the announcement.
“It is important to prosecute mortgage fraud cases to protect the integrity of our financial markets in our community,” said U.S. Attorney David Gaouette. “This recent Indictment should serve as a continued warning to anyone who is contemplating mortgage fraud schemes, that their illegal activity won’t go unnoticed,” said Christopher M. Sigerson, Special Agent in Charge for IRS Criminal Investigation for the Denver Field Office.
If convicted, the Silvi faces 20 years imprisonment and/or fines in excess of $250,000 with respect to counts 1 through 13, and 10 years imprisonment and/or fines in excess of $250,000 with respect to counts 14 through 19.
This case was investigated by Internal Revenue Service Criminal Investigation (IRS CI), and is being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.