Monday, December 15, 2008

5 Charged In Mortgage Fraud Scheme

A fifteen count federal grand jury indictment in Cleveland, Ohio, has been unsealed against:

Paul A. Lesniak, 40, Strongsville, Ohio,

Uri Gofman, 36, Beachwood, Ohio,

Grennadiy Simkhovich, 51, Highland Heights, Ohio,

Dave Pirichy, 38, Burton, Ohio; and

Howard Sieferd, Jr., 57, Euclid, Ohio. 

The defendants are charged for their roles in a mortgage fraud scheme; one count of conspiracy to commit wire fraud, and eighteen counts of wire fraud against all defendants.

The indictment alleges that during the period from about August 2005 through September 2005, Paul A. Lesniak, Uri Gofman, Grennadiy Simkhovich, Dave Pirichy and Howard Sieferd, Jr. conspired to purchase eighteen properties in the Cleveland area for almost $2 million, of which thirteen properties for $1.2 million were all purchased on or about August 16, 2005. The indictment further alleges that as part of their conspiracy, defendant Paul A. Lesniak completed and submitted false and fraudulent loan applications with the assistance of defendant Dave Pirichy, a mortgage broker for Central National Mortgage, LLC, which falsified his employment, overstated his income, overstated his assets, falsified his intent to occupy the property and concealed the source of the down-payment funds, which were in fact provided by defendants Uri Gofman and Grennadiy Simkhovich through their company, Real Asset Fund, LLC, in order to obtain the financing to purchase the eighteen properties. The indictment alleges that defendant Howard Sieferd, Jr., a licensed title agent through the State of Ohio employed by Family Title Service, Inc., served as the title agent on the properties and conspired with defendants Uri Gofman and Grennadiy Simkhovich to allow the mortgage loan proceeds to be fraudulently and improperly distributed. The indictment alleges that the defendants did all of this in order to deceive and defraud Long Beach Mortgage Company, Argent Mortgage Company, LLC and Mortgage IT, Inc. into funding the mortgage loans.

If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, each defendant’s role in the offense, and the characteristics of the violation. In all cases the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant United States Attorney Mark S. Bennett, following an investigation by the Cleveland Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and in conjunction with the Cuyahoga County Mortgage Fraud Task Force.

An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

mortgage fraud