Wednesday, May 21, 2008

11 Indicted For Boston Area Scheme

Eleven people were indicted in a mortgage scheme involving 21 homes in the Boston, Massachusetts area:

Eric L. Levine, 55, Brookline, Massachusetts, a suspended attorney, was charged withe one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment), forty one Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment) and nineteen Counts of Money Laundering (Maximum penalty for each count: 10 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment)

J. Daniel Lindley, 59, Jamaica Plain, Massachusetts, a practicing attorney, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment), forty one Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment) and nineteen Counts of Money Laundering (Maximum penalty for each count: 10 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment)

Ernst Appolon, 28, Braintree, Massachusetts, a real estate and mortgage broker, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment), thirty four Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment) and one Count of Money Laundering (Maximum penalty for each count: 10 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment)

Andre Junior Lamerique, 25, formerly of Sharon, Massachusetts, a mortgage broker, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment) and thirty three Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment)

Widner Lamarre, 34, Brockton, Massachusetts, a mortgage broker, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment) and eighteen Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment)

Ralph Appolon, 27, Watertown, Massachusetts, a mortgage broker, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment) and four Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment)

Daniel Appolon, 21, a Massachusetts mortgage company employee was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment) and six Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment)

Jermaine Blake, 21, Mattapan, Massachusetts, a mortgage broker, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment) and thirteen Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment)

Jean Noriscat, 33, Quincy, Massachusetts, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment), ten Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment), and five Counts of Aggravated Identity Theft (Carries a mandatory sentence of 2 years imprisonment consecutive to any other sentence imposed)

Samuel Jean-Louis, 23, Miami, Florida, a mortgage broker, was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment) and nine Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment)

Latoya Haltiwanger, 26, Los Angeles, California, a mortgage broker was charged with one Count of Conspiracy to Commit Wire Fraud (Maximum penalty: 5 years imprisonment, $250,000 fine, 3 years supervised release, and $100 special assessment) and seven Counts of Wire Fraud (Maximum penalty for each count: 20 years imprisonment, $1 million fine, 5 years supervised release, and $100 special assessment).

The Indictment also contains allegations for the forfeiture of illegal proceeds and property related to the fraudulent scheme. All defendants except for Daniel Appolon and Samuel Jean-Louis were arrested by federal agents beginning at 6:00 am on Monday, May 20, 2008.

The Indictment alleges that from May of 2005 through June of 2006, the defendants fraudulently obtained more than $10.6 million from real estate mortgage lenders, using straw borrowers and stolen identifications. The Indictment further alleges that the defendants used fraudulent loan applications which grossly inflated the purchase prices of properties, misrepresented the identification of the borrowers and their income or employment, as well as other information. According to the Indictment, the scheme defrauded 10 mortgage lenders in connection with 21 properties in the Boston, Massachusetts area. The mortgages on all of the properties have gone into default and many of the properties have been foreclosed.

United States Attorney Michael J. Sullivan said, “Today’s Indictment charges professionals in the mortgage industry, including attorneys and mortgage brokers, who are alleged to have conducted a large-scale fraudulent scheme. It is schemes like the one charged today that have contributed to the current credit crisis in the real estate market.” Sullivan concluded, “The victims of these types of crimes are not only the lenders who have lost millions of dollars, but the homeowners and neighborhoods whose property values were fraudulently inflated, resulting in homes being abandoned by borrowers who never intended to occupy the residences. Mortgage fraud schemes of this nature make it more difficult for honest home owners to purchase or finance their homes. This investigation and today’s arrests today are the result of an excellent cooperative effort among federal and state law enforcement agencies.”

Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - New England Field Division stated, “Mortgage fraud is an escalating problem in the United States with no segment of the real estate market protected. Combating mortgage fraud is a priority for the FBI because mortgage lending and the housing market have a significant overall effect on the nation’s economy. The FBI will continue to work closely with our law enforcement partners to combat this growing epidemic.”

Tyrone G. Barney, Special Agent in Charge of IRS Criminal Investigation stated that, “These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, leave lenders burdened with bad loans and neighborhoods with abandoned and deteriorating properties. IRS-CI is committed to pursuing these important investigations with our law enforcement partners.”

Randy S. Miskanic, Inspector in Charge, US Postal Inspection Service said, “The U.S. Postal Inspection Service is committed to protecting American consumers from misuse of the mails. Combating these frauds is a significant priority for our agency. The unscrupulous acts of these individuals have a devastating impact on consumers, lenders and the nation’s economy. We are pleased to join our law enforcement partners in pursuit of those individuals or groups who commit mortgage fraud.”

“If the individuals accused of this crime knowingly preyed on our neighborhoods they should be punished to the full extent of the law. The impacts of these treacherous acts are going to be with us for a long time. Many of these buildings are now abandoned and vacant and the citizens of Boston are stuck cleaning up this mess. In Boston, we have worked too hard to make our neighborhoods thriving places to live. I appreciate the hard work done in this investigation by the Boston Police and our partners at the U.S. Attorney’s Office, Federal Bureau of Investigations and everyone else involved. I hope there are more indictments on the way,” Boston Mayor Thomas M. Menino.

Boston Police Commissioner Ed Davis said, “This scheme came to light during the course of a homicide investigation. In a very real way, this activity leads to the deterioration of our neighborhoods. Public safety is adversely affected and illegal activity will take hold. I would like to commend the remarkable work done by all of our law enforcement partners. The impressive and comprehensive way investigators uncovered this illegal activity should be applauded.”

mortgage fraud

1. Eric Levine is getting what he deserves and may be he should be punished more for his harassment he had done to me and my family in past. He had used the justice system against me by his malpractice. I am very happy for whatever has happened to him.

   Posted by  on  10/16  at  10:46 PM