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Three New Defendants in Massachusetts Flip Scheme

Superseding Indictment Alleges Additional Charges and Loans

The following new defendants were added in a 69 count superseding indictment filed in an ongoing Massachusetts mortgage fraud case:

Lawrence V. Lynch, 53, Wilbraham, Massachusetts, president of Affordable Mortgage Co. - According to the indictment, he assisted Bergdoll, Romeo, Matos and other conspirators in obtaining loans through Equicredit and other lenders.  He is also alleged to have been a partner with Romeo in Tiffy Corporation and to have invested in the purchase and sale of real estate with various conspirators;

Edgar Corona, 27, Springfield, Massachusetts, used car salesman – alleged to have assisted conspirators in purchase and sale of real estate in the greater Springfield area and to have become a partner in purchase and sale of real estate both individually and through EC Home Sales;

Kathryn Zepka, 57.  Alleged to have formerly worked as a mortgage broker for Metro Mortgage, Inc. and to have assisted Matos and other conspirators in obtaining loans for prospective buyers through various lending institutions.

Those previously named in the original indictment and included as defendants in the superseding indictment:

Albert V. Innarelli, 47, closing attorney, Agawam, MA (disbarred);

Michael Bergdoll, 40, Property Seller/Real Estate Developer, Wilbraham, MA – according to indictment, utilized corporate entities to purchase properties including Northeast Property Consultants, Ridgewood Properties and Hi-Fi Corporation and owned and operated Bergdoll Home Improvement;

Anthony Matos, 33, Property Seller/Real Estate Broker, Ludlow, MA– according to indictment, utilized corporate entities to purchase properties including New England Wholesalers, Elite Auto Center and First Empire Realty;

Pasquale A. Romeo, 66, Property Seller/Real Estate Broker, Springfield, MA– according to indictment, utilized corporate entities to purchase properties including Tiffy Corporation and was partner with Bergdoll in Hi-Fi Corporation;

Wilfred Changasie, 50, Borrower Recruiter, formerly of Springfield, MA – alleged to have become partner with other conspirators in purchase and sale of real estate;

Theodore C. Jarrett Jr., 48, mortgage broker, Springfield, MA – according to indictment assisted Bergdoll, Romeo, Matos and others in obtaining loans for prospective buyers through Equicredit Corporation;

James E. Smith, 27, mortgage broker, Baltimore, MD. According to indictment, assisted conspirators in obtaining loans through Equicredit and other lenders;

Jonathan Frederick, 42, appraiser, Agawam, MA – alleged to have formerly owned WestSide Appraisal and to have performed appraisals on behalf of Equicredit and other lenders;

Joseph Sullivan, 28, appraiser, Springfield, MA – alleged to own Sullivan Appraisals and to perform appraisal on behalf of various lending institutions;

Mark L. McCarthy, 41, mortgage broker, Wilbraham, MA.  According to indictment, worked at Ivy Mortgage and assisted conspirators in obtaining loans through Equicredit and other lenders and also owned RCML, Inc. an entity that purchased and sold real estate in the greater Springfield area.

The original indictment charged the defendants with wire fraud and aiding and abetting.  The superseding indictment also alleges conspiracy to launder money and includes a forfeiture allegation.

All defendants have entered pleas of not guilty to the original indictment. Wilfred Changasie is scheduled to plead guilty on September 30, 2005.

The indictment alleges that Bergdoll, Romeo, Matos and others purchased distressed properties, typically in low-income neighborhoods, at resolve the properties rapidly at artificially inflated values. They utilized ‘runners’ to recruit prospective buyers and paid finder’s fees to the runners of approximately $2000 for the successful sale of properties.  The defendants represented to buyers that the buyers would not have to make down payments and that money would be kicked back at the time of closing. They also represented that certain repairs would be made to the properties before closing.

Bergdoll, Romeo, Matos and others, who had established business relationships with Jarrett, Smith, McCarthy, Lynch, Zepka and other mortgage brokers, referred many of the buyers to them for loans.  As many of the borrowers were not qualified, the defendants generated and processed false and fraudulent loan applications and documentation through lending institutions. False documentation reflected that buyers made down payments that were not actually made, reflected inflated borrower income and showed improvements that were not actually made to the properties. The defendants also generated bogus second mortgages to assist in securing loans and created fraudulent inflated appraisals.  The mortgage brokers and appraises received continued business along with ‘incentive’ payments such as cash or hidden interests in real estate deals.

Once the loans had been approved by the lending institutions, Bergdoll, Romeo and Matos referred the buyers to Innarelli and other attorneys. Innarelli generated false closing documentation to facilitate and conceal the fraud.  Innarelli received both continued business and ‘incentive’ payments such as cash or hidden interests in real estate deals. Anticipating foreclosure, Innarelli withheld real estate and utility payments owed by buyers at closing and kept the payments for his personal use.

Properties identified in indicment:

59-61 Avon Place, Springfield, MA

71 Bernard Street, Springfield, MA

31 Mazarin Street, Springfield, MA

1349-1351 Worcester Street, Springfield, MA

16 Aspen Street, Ware, MA

740 Allen Street, Springfield, MA

104 Eastern Avenue, Springfield, MA

62 Kenyon Street, Springfield, MA

838-840 Worthington Street, Springfield, MA

81 Arey Street, Springfield, MA

70-72 Maynard Street, Springfield, MA

52 Clarendon Street, Springfield, MA

125-127 Alderman Street, Springfield, MA

15-17 Eaton Street, Springfield, MA

825 Chicopee Street, Chicopee, MA

6-8 Hampden Street, Springfield, MA

50-52 Stebbins Street, Springfield, MA

327-329 Bay Street, Springfield, MA

38-40 Clarendon Street, Springfield, MA

81 Barber Street, Springfield, MA

51 Armory Street, Springfield, MA

139 Berkshire Avenue, Springfield, MA

103 Central Street, Springfield, MA

102-104 Cedar Street, Springfield, MA

142 Cedar Street, Springfield, MA

30-32 Lebanon Street, Springfield, MA

84 Buckingham Avenue, Springfield, MA

83 Dawes Street, Springfield, MA

100 Pearl Street, Springfield, MA

886-886 ˝ Dwight Street, Holyoke, MA

39 Eldridge Avenue, Springfield, MA

70 Cuff Avenue, Springfield, MA

271 Oak Grove Avenue, Springfield, MA

86 Calhoun Street, Springfield, MA

58-60 Howes Street, Springfield, MA

140 West Alvord Street, Springfield, MA

51 Kensington Avenue, Springfield, MA

130-132 Orange Street, Springfield, MA

20-22 Gates Street, Holyoke, MA

15 Forest Street, Springfield, MA

272-274 Orange Street, Springfield, MA

82 Miller Street, Springfield, MA

66 Crystal Avenue, Springfield, MA

12-14 James Street, Springfield, MA

464-466 Pleasant Street, Holyoke, MA

22 Burr Street, Springfield, MA

49 Palmer Avenue, Springfield, MA

25-27 Colchester Street, Springfield, MA

93 Dawes Street, Springfield, MA

126-128 White Street, Springfield, MA

2-4 St. Jerome Avenue, Holyoke, MA

154 Oak Grove, Springfield, MA

617-619 Union Street, Springfield, MA

50 Church Street, Westfield, MA

37-39 Commonwealth Street, Springfield, MA

13-15 Maple Street, Westfield, MA

45 Montmorenci Street, Springfield, MA

62 Sycamore Street, Springfield, MA

84 Andrew Street, Springfield, MA

62-64 Alderman Street, Springfield, MA

49 Montrose Street, Springfield, MA

75-77 Clifton Avenue, Springfield, MA

20 Alden Street, Springfield, MA

100-104 Greene Street, Springfield, MA

59-61 Avon Place, Springfield, MA

108 Ranney Street, Springfield, MA

102 Gilbert Avenue, Springfield, MA

71 Thompson Street, Springfield, MA

172 Quincy Street, Springfield, MA

21-27 Putnam Circle, Springfield, MA

51 Winthrop Street, Springfield, MA

32-34 Ozark Street, Springfield, MA

34 Cambridge Street, Springfield, MA

88 Cleveland Street, Springfield, MA

170-172 Center Street, Springfield, MA

13-15 Maple Street, Westfield, MA

320 Gilbert Avenue, Springfield, MA

219 Gresham Street, Springfield, MA

130-132 Johnson Street, Springfield, MA

935 Carow Street, Springfield, MA

189 Bay Street, Springfield, MA

121 Cedar Street, Springfield, MA

95-97 Genesee Street, Springfield, MA

152-154 King Street, Springfield, MA

21 Marble Street, Springfield, MA

34 Daytona Street, Springfield, MA

825 Chicopee Street, Chicopee, MA

86 Merrill Street, Springfield, MA

89 Mapledell Street, Springfield, MA

241 Oak Street, Holyoke, MA

170 Massasoit Street, Springfield, MA

111 King Street, Springfield, MA

100 Wilmont Street, Springfield, MA

30-32 Austin Street, Springfield, MA

29 Warriner Avenue, Springfield, MA

70-72 Alderman Street, Springfield, MA

96 Kensington Street, Springfield, MA

149 Bowles Street, Springfield, MA

15 Forest Street, Springfield, MA

28-30 Bay Street, Springfield, MA

189-191 Maynard Street, Springfield, MA

1. need help, i’m loosing my home.

   Posted by  on  03/28  at  02:05 PM

2. i can’t refinace,cause the apprasiel,was to high,now i can’t make my house payments,or sell it on the market,please i need help.

   Posted by  on  03/28  at  02:09 PM

3. I grew up in house at 838 Worthington St., Spfld., MA.  Just out of curiousity, I wanted to know if house was still there, torn down or what.  I cannot find it on Google.  Thank You.  M. Neale

   Posted by  on  11/18  at  11:42 AM