Tuesday, November 20, 2007

New York Lawyer Sentenced For Defrauding Banks

Anthony Belletteiri, a real estate lawyer and former partner in the now defunct Westchester, New York law firm of Bellettieri, Fonte & Laudonio, P.C. (BF&L), was sentenced in White Plains, New York federal court to 121 months in prison for having defrauded numerous banks and clients of tens of millions of dollars through an elaborate scheme involving BF&L’s corporate and escrow bank accounts.

According to statements in court, court papers and prior proceedings, BF&L was the receiving and disbursing agent for numerous banks and financial institutions, and in that capacity it regularly received millions of dollars earmarked for disbursement at real estate closings, refinancings and other related transactions. In addition, in connection with its substantial real estate practice, BF&L regularly received and held private client funds in connection with real estate closings and construction loans. Over a period of approximately three years, Belletteiri siphoned more than $22 million from BF&L’s bank accounts, concealing his thefts through a check-kiting scheme which shifted the majority of the loss to the bank where BF&L maintained its bank accounts.

Belletteiri admitted at his guilty plea that he used the stolen money, in part, to purchase real estate interests in commercial and vacation destinations, to make home improvements (including the construction of a kitchen extension and a pool), to pay credit card debts for himself and others, to fund BF&L salaries that the business of BF&L could not sustain from its earnings, to fund a family wedding, and to purchase and lease automobiles for himself and others.

In a second scheme, Belletteiri admitted that he stole approximately $2 million from a client, falsely telling the client that he had invested the client’s money in private mortgages. In order to conceal his theft, Belletteiri created phoney mortgage documents, which he provided to the client, so that the client believed that his money was secured by mortgages, when it was not.

In imposing the sentence, United States District Judge said that Belletteiri’s crime was made possible because our society gives lawyers prestige and entrusts them to hold client funds.  The Judge stated that a substantial sentence was warranted in this case in order to fulfill the sentencing goals of general and specific deterrence.

At sentencing, one victim told the Court about the devastating impact on her entire family that resulted from Belletteiri‘s theft of her elderly father’s $200,000. Belletteiri told the Judge that his continuing criminal conduct was like “quicksand,” that he had seen “no way out,” and that his confession of guilt had brought him some relief.

Belletteiri was ordered to surrender on December 26, 2007, to a federal prison to begin serving his sentence. The Judge also sentenced Belletteiri to 3 years of supervised release to follow his incarceration. The Court also ordered forfeiture of Belletteiri‘s properties. According to statements made in court, Belletteiri owes approximately $22 million in restitution to his victims, and a final Order of Restitution will be issued within the next 90 days.

mortgage fraud