Friday, May 25, 2007

Mortgage Fraud Convictions Reversed

The US Appellate Court recently reversed the convictions of two brothers accused of mortgage fraud. Robert J. Amico was convicted of a variety of financial crimes, including mail fraud, tax evasion, and conspiracy. Richard N. Amico was convicted on one count each of mail fraud, tax evasion, and conspiracy. During trial, the Amicos argued that the district judge should have recused himself because he had prior dealings with the government’s main witness concerning a mortgage application. Specifically, the witness was a mortgage broker that allegedly assisted the Judge in making misrepresentations in a mortgage application for a loan. However, the Judge would not recuse himself stating that he would remain impartial notwithstanding the allegations.

Impartiality, a requirement for all Judges, was viewed as an insurmountable obstacle by the Appellate Court. Because recusal was required, the convictions were overturned. The US Attorneys office has stated that they will be ready to retry the matter if necessary.

In December 2000, 4 individuals, among others, were indicted for their role in the fraud scheme:

Robert Amico, Jr., Borrower;
Richard Amico, Borrower;
Robert A. Amico, Sr., (now deceased), Builder; and
Patrick McNamara, Mortgage Broker.

The multiple count indictment with conspiracy to defraud banks and private mortgage lenders by falsifying loan applications and misrepresenting the value of properties offered as collateral. The indictment also alleged that the defendants submitted false information on loan applications for borrowers, including themselves. The government alleged that Patrick McNamara and Robert Sr. were the driving forces behind the scheme, which originated around 1993. During the course of the scheme, mortgages were obtained from various lenders on more than 100 homes based on false documentation. In many cases, the mortgage amounts were greater than the value of the properties being purchased. Some of the purchasers were apparently willing participants in the fraud, while others did not know that false information had been submitted on their behalf. At trial, Richard‘s main defense was that he was not involved in the scheme and that he too had been mislead by McNamara, who typically prepared false documents without Richard‘s knowledge.

In January 2001, McNamara entered into a plea agreement and agreed to cooperate, to fully disclose his criminal activity, and to testify. Because of his prominent role in the fraud, his cooperation and testimony were central to the government’s case.

McNamara told prosecutors that he had helped prepare a fraudulent application in 1987--before the beginning of his scheme with the Amicos, for the judge assigned to the Amico trial, Judge Siragusa, who was then the First Assistant Monroe County District Attorney. Prosecutors then made a motion that Siragusa recuse himself. The Judge denied the motion stating that he remained impartial.

On April 3, 2003, the jury convicted Robert Jr. on all 22 counts, and convicted Richard of conspiracy and one count of mail fraud, but acquitted him on all other charges. Robert Jr. was sentenced to 210 months and Richard was sentenced to 108 months incarceration. Robert Jr. and Richard were each ordered to make restitution of more than $14.5 million and to forfeit more than $56.8 million. McNamara was not sentenced because he had already received a 57 month sentence, which included an eight-level substantial assistance departure.

The matter was remanded back to the District Court for further proceedings.

mortgage fraud

1. My builder has been doing the EXACT same thing as in the Amico case.  Who should I notify first?  The banks, FBI, or ??
   I am reluctant to turn him in because I have very small children and am very afraid of some type of retaliation.

   Posted by  on  06/16  at  11:15 AM