Wednesday, November 12, 2008

Woman Indicted In Bankruptcy, Mortgage And Structuring Scheme

Linda Castre Gosman, a.k.a. Lin Gosman, a.k.a. Linda Castre, 59, currently of West Palm Beach, Florida, was indicted with five counts of bankruptcy fraud, in violation of 18 U.S.C. §152; two counts of mortgage fraud, in violation of 18 U.S.C. §1014; nine counts of structuring, in violation of Title 31, United States Code, Section 5324; and related forfeiture. 

The indictment alleges that Gosman made a false statement on her December 29, 2004 application for a $1,140,000.00 mortgage loan for property located on South Flagler Drive, West Palm Beach, FL.  Specifically, Gosman allegedly failed to disclose that she was a party to the ongoing litigation against her in her husband’s bankruptcy.  She is also charged with failing to disclose the $66 million March 1, 2005 judgment against her in a March 30, 2005 mortgage application for a $350,000 refinancing cash back mortgage loan on property located at Sea Steppes Court, Jupiter, FL.

Gosman is also charged with nine counts of structuring cash withdrawals from domestic bank accounts she had opened.  The indictment alleges that, between September 26, 2005 and March 15, 2007, approximately $419,306.11 from overseas accounts was deposited into her domestic accounts.  The indictment alleges that, of this money, Gosman structured the withdrawal of approximately $343,999.00 in cash.  In addition to the criminal charges, the indictment seeks to forfeit $693,999.00 representing proceeds Gosman received from the Sea Steppes mortgage fraud and from the structuring. 

Finally, the Indictment alleges that on March 1, 2005, a judgment in the amount of $66,539,181.01 was issued against Gosman stemming from her husband’s bankruptcy.  Gosman was deposed on April 25, 2005 and was asked about storage units she used.  During the deposition, Gosman falsely testified that she used only certain storage units and did not disclose information about another storage facility she used.  Gosman was deposed again on June 10, 2005, and was again asked about storage units she used.  Once again, she falsely testified that she used only certain storage units when, in fact, she used at least one other storage facility.  Gosman was also asked whether she owned any furniture, artwork or jewelry other than what was already in possession the trustee that had been appointed in her husband’s bankruptcy and claimed she did not. 

The indictment alleges that on June 22, 2005, a “break order” issued by the United States Bankruptcy Court was executed at a storage unit at Public Storage, Inc., rented by Gosman.  The “break order” allowed the bankruptcy trustee, accompanied by United States Marshals, to enter the storage unit without Gosman’s knowledge or permission.  Upon entering the storage unit, the bankruptcy trustee found valuable furniture, artwork, and other significant items.  On July 1, 2005, another “break order” was executed at Villa Jasmine, a luxury unit within the Colony Hotel, located in Palm Beach, FL, where Gosman resided.  A locked safe was found at the residence.  On July 22, 2005, a third “break order” was executed on the safe found at Villa Jasmine.  A triple strand Tahitian pearl necklace with a diamond encrusted clasp and a pair of pave and baguette diamond earrings were discovered in the safe.

If convicted, each bankruptcy fraud count carries a statutory maximum penalty of five (5) years’ imprisonment; each mortgage fraud count carries a statutory maximum penalty of thirty (30) years’ imprisonment; and the structuring counts each carry a maximum penalty of ten (10) years’ imprisonment, substantial fines, and court ordered restitution. 

Mr. Acosta commend the investigative efforts of the Federal Bureau of Investigation and the Internal Revenue Service.  The case is being handled by Assistant United States Attorneys Carolyn Bell, Lynn Rosenthal, and Antonia Barnes.

mortgage fraud