Man Sentenced for Defrauding Lenders

Allison Tussey —  July 6, 2011 — Leave a comment

Sabir Moghul, 72, Manchester, Connecticut, was sentenced by Chief United States District Judge Alvin W. Thompson in Hartford, Connecticut, to 36 months of imprisonment, followed by three years of supervised release, for bank fraud and money laundering.

According to court documents and statements made in court, in 2005, Moghul applied for two mortgage loans from different banks, each in an amount of more than $1 million, using his former residence at 110 Long Hill Drive, Somers, Connecticut, as collateral. Each loan was supposed to be secured with a first mortgage on the residence, but at no time did Moghul inform either lender that he had applied for another loan to be secured by the same property.

During the application processes, Moghul‘s residence was appraised twice. One appraisal valued the residence at approximately $1.6 million and a second appraisal valued the residence at approximately $1.8 million. Moghul received approval for each loan and scheduled one closing to occur at his home at 10:30 a.m. on May 13, 2005, and a second closing to occur on the same day at 11:45 a.m. During the first closing, Moghul and his wife signed mortgage loan documents for a loan in the amount of $1,080,000 from Lehman Brothers Bank. At the second closing, Moghul and his wife signed mortgage loan documents for a loan from Washington Mutual in the amount of $1,200,000.

After the closings, Lehman Brothers Bank recorded a first mortgage and Washington Mutual Bank recorded a secondary security interest. Moghul subsequently defaulted on the loans and the home went into foreclosure. Washington Mutual sustained a loss of approximately $1.2 million as a result of Moghul‘s fraud.

In August 2005, Moghulapplied $445,000 of the fraudulently obtained loan proceeds to the purchase of a medical office building located in Hamden, Connecticut. The building has since been sold through foreclosure.

On June 14, 2010, Moghul waived his right to indictment and pleaded guilty to one count of bank fraud and one count of money laundering stemming from this scheme.

Today, Judge Thompson ordered Moghul to pay restitution in the amount of $1.2 million. Moghul has provided his attorney with approximately $970,474 in funds that will be used toward payment of his restitution.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. The case was prosecuted by Assistant United States Attorney Anastasia Enos King.

Allison Tussey

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