Developer Sentenced for Illegal Flipping Scheme

Allison Tussey —  July 10, 2014 — 1 Comment

Joseph Daniele, 42, Tampa, Florida, was sentenced by U.S. District Judge Elizabeth A. Kovachevich to 10 years and 1 month in federal prison for conspiracy to commit wire fraud. Daniele illegally flipped approximately 80 homes across Florida using a “no money down” scam.

As part of his sentence, the court also entered a money judgment in the amount of $7,469,739.00.

Daniele pleaded guilty on May 29, 2013.

According to court documents, Daniele was a developer who flipped houses across Florida, including approximately 80 houses located in south St. Petersburg.

Daniele and his conspirators advertised “no money down” home investment opportunities to buy Section 8-ready houses, for people with good credit. However, the loans arranged by the conspirators actually required that the borrowers put money into the deals. Daniele either fronted the down payments directly, or indirectly, through complicit title agents and mortgage brokers. The scheme involved hundreds of properties, almost all of which fell into foreclosure, resulting in at least $7 million in losses.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.

Allison Tussey

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One response to Developer Sentenced for Illegal Flipping Scheme

  1. Its very hard to belive the buyers did not know they were committing fraud.

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