Thursday, January 04, 2001

Ioannis P. Ioannou and Homer Funding Indicted in Mortgage Fraud

Nassau County District Attorney Denis Dillon today announced a 93 count indictment against a mortgage broker who has apparently fled the country after defrauding homeowners and lending institutions out of hundreds of thousands of dollars.  Based on information emerging from the continuing investigation, the New York State Banking Department believes that the total may ultimately exceed $8 million.

Ioannis P. Ioannou and his company, Homer Funding, Ltd., located at 94 Cherry Valley Avenue, West Hempstead, were arraigned today before Judge Daniel Cotter on charges of Grand Larceny, Criminal Possession of a Forged Instrument, Falsifying Business Records and Scheme to Defraud.  More than one active arrest warrant for Ioannou exists in connection with an aggravated harassment charge and a related felony complaint.  These indictments will mark the end of this phase of an ongoing joint investigation between the New York State Banking Department and the Nassau District Attorney’s Office that began in April, 1999.

These fraudulent activities drew the attention of the New York State Banking Department in late 1998, which resulted in a special examination by the Mortgage Banking Division.  Examiners cited many instances of fraudulent documents in loan files and referred the matter to the Criminal Investigations Bureau (CIB) for further investigation.  As a result of CIB’s investigation, the New York State Banking Department asked the Nassau County District Attorney’s office to review the evidence gathered by the investigation.

”I am very proud of the hard work and dedication displayed by the Banking Department in the investigation of this case,” said Elizabeth McCaul, Superintendent of Banks.  “I want to aplaud the District Attorney’s aggressive efforts to successfully prosecute Mr. Ioannou, and thank the District Attorney and his staff for their persistence.”

According to Dillon,

“At various times from 1996 to 2000, Ioannou falsified title reports and loan documents to obtain funds from unsuspecting lenders on behalf of various homeowners.  The homeowners were refinancing their mortgages to do home improvement work through Ioannou.”

“In each of the applications, the circumstances are the same.  Ioannou falsified one or more of the documents submitted to the lender, causing them to approve a loan that would not otherwise have been made.  The falsified documents differed in each case, but included credit applications, title reports, real estate appraisals, tax returns, checks and leases.  The victims of these larcenies and attempted larcenies were the lenders and the attorneys who acted as the lenders’ agents at closing.”

“Following the closing, Ioannou typically forged the name of the borrower on any checks for proceeds made out to that person, and then deposited them into bank accounts under his control for his own use.  Many of these homeowners found themselves saddled with loans they could not repay.  Ioannou, meanwhile, by depositing their checks into his own accounts, ensured that he would receive the entirety of his money up front - contrary to the terms of the contract.  In some cases, the remaining work was never done at all.”

Ioannou and Homer Funding were charged today with 8 counts of Grand Larceny in the Second Degree, a Class C Felony; 3 counts of Attempted Grand Larceny in the Second Degree, a Class D Felony; 46 counts of Criminal Possession of a Forged Instrument in the Second Degree, a Class D Felony; 34 counts of Falsifying Business Records in the First Degree, a Class E Felony; and 2 counts of Scheme to Defraud in the First Degree, a Class E Felony.  The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.  Investigation is continuing into other companies and associates of Ioannou.

As part of any ultimate disposition of this case, the District Attorney will seek restitution for the victims. 

Anyone who feels they may have been victimized in this or similar schemes is urged to contact the Nassau District Attorney’s Criminal Frauds Bureau at 516-571-3343.

mortgage fraud

1. The real crook here was Constantine Orphanos who has been in regular contact with Ioannou in Cypress since he aided him in escaping to Europe. Orphanos did the actual forgies, invented a fake partner named George and screwed many innocent families out of money which led to them losing their homes. Orphanos and his tax deadbeat mom now hide out in Greece .

   Posted by  on  02/02  at  01:47 PM

2. Great information, Its about time the Feds start to crack down on these rip off artists.

   Posted by  on  02/11  at  08:09 AM

3. Mr Ioannou “the aulter boy” even ran for office in his native Sotira, Famagusta,Cyprus under the elies of Ioannou Yiannakis .He is also President ,owner of the “Onisillos"soccer club in his home town of Sotira Famagusta Cyprus.He is also using the alias of Papageorgiou Ioannis.He often travels to Bulgaria where he has business interests.

   Posted by  on  02/12  at  06:51 PM

4. Tino Orphanos still is involved with John Ioannou and other greek thugs- he’ll get his- thieves can never stop stealing. Heard Orphanos got married with Ioannou in attendance - poor girl

   Posted by  on  09/12  at  06:12 PM