Friday, December 21, 2007

Man Who Defrauded NY Bank Sentenced To 1 Day

James J. Licata, 54, Bradenton, Florida, formerly of Greenwich, Connecticut, was sentenced in New Haven, Connecticut, to one day of imprisonment and four years of supervised release, the first six months of which Licata must spend confined to his home.  The Judge also ordered Licata to pay a fine in the amount of $3000.  On September 28, 2007, Licata pleaded guilty to Count One of a Superseding Indictment, which alleged that he had engaged in a scheme to defraud Roslyn Savings Bank, Jericho, New York.  The Superseding Indictment alleged that Licata sought and obtained a $19 million dollar loan from Roslyn Savings Bank based on a series of material misrepresentations relating to his financial condition.

According to documents filed with the Court, Licata admitted that, during the course of a loan application process in March 2001, he engaged in a scheme to defraud Roslyn Savings Bank by willfully failing to disclose or by failing to have others disclose material information, namely, that loans relating to certain New Jersey real estate identified on his personal financial statements were in default and that the properties securing those loans were proceeding to foreclosure. 

Licata was sentenced below the recommended federal sentencing guidelines range based on Licata’s mental health condition, his extraordinary family responsibilities, and his prior charitable works.

Licata has declared personal bankruptcy.  The matter is pending in U.S. Bankruptcy Court in Bridgeport, Connecticut.

This case was investigated by the Federal Deposit Insurance Corporation, Office of the Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation Division.  The case was prosecuted by Assistant United States Attorneys Christopher W. Schmeisser and David J. Sheldon.

mortgage fraud

1. This story is a perfect example of how messy this business can get - and it comes from all parties involved, lenders, debtors, realtors.  The system will never be clean and I think that this type of fraud is really far too common.  I hope we get some form of solution to keep us all in business.

   Posted by  on  12/23  at  07:19 PM

2. Reference the following: htt;://www.usdoj.gov/usao/ct/Press2006/20060324.html and the following paragraph is there: “LICATA is charged with two counts of wire fraud and three counts of money laundering. If convicted of wire fraud, LICATA faces a maximum term of imprisonment of 30 years on each count and a fine of up to approximately $14 million. If convicted of money laundering, LICATA faces a maximum term of imprisonment of 10 years on each count, and a fine of up to approximately $2.65 million.”
   What did he end up with?? 1 day in jail and a $3,000 fine.  Hmmmm....either this country is great or???

   Posted by  on  01/22  at  12:25 PM

3. At one point, James J. Licata’s empire was 880 million $$, base on ‘90’s R/E value. All, over-funded and cash-back at closing, millions. $20 million house at 23 Meetinghouse Road, and $50 million across the street + Corp Jet. All scammed investors, Walker family included, then he beats-up banks with Chapter 11. Best there ever was. Lives next to Regis.

   Posted by  on  02/10  at  05:52 AM