New York Man Pleads Guilty to Mortgage Fraud

Allison Tussey —  April 9, 2009 — 1 Comment

Aaron Dare, Albany, NY, pled guilty to (2) counts of Grand Larceny in the Second Degree, a Class “C” Felony in front of the Honorable Thomas Breslin. This plea comes as a result of crimes that were committed after Dare pled guilty to another set of federal charges and was sentenced, as previously reported by Mortgage Fraud Blog.

Under the terms of the plea bargain, Dare will be sentenced to a maximum of 8 to 24 years in prison and must cooperate fully in clearing the titles of the properties involved in the real estate scams. Sentencing is scheduled for June 2, 2009. The prison term will be served consecutively with the 60 month sentence Dare is currently serving in federal prison and the 1 to 3 year sentence imposed by the Honorable Dan Lamont for the fraud associated with 215 Second Avenue, Albany, New York, in April, 2008.

In July 2007, the New York State Police Financial Crimes Unit (FCU) was contacted by a company that buys and sells existing mortgages with information that several loans in the Albany area were suspicious. The FCU researched the loans and determined that they were connected to Aaron Dare and Ana Monteiro.

Between January 2005 and August of 2007, Dare and Monteiro funded loans of 25 properties in Albany County totaling $2.3 million:
8 Quail St.
55 N. Manning Blvd.
64 Amity St. (Cohoes)
84 Lark St.
158 Lark St.
61 Catherine St.
72 Catherine St.
73 Catherine St.
113 Clinton St.
163 Dove St.
347 Third St.
350 Third St.
380 Livingston Ave.
388 Livingston Ave.
464 Livingston Ave.
779 Livingston Ave.
790 Livingston Ave.
382 First St.
386 First St.
459 First St.
119 Broad St.
25 Alexander St.
73 Judson St.
198 Second St.
443 Second St.

The group then stole $1.6 million of the $2.3 million by not paying off existing mortgages. While acting as mortgage brokers, property managers, title and settlement companies, the new mortgages were obtained using phantom down payments, justified by inflated appraisals. The proceeds of these new inflated mortgages did not go to pay off the existing mortgages.

The proceeds of these new loans went into accounts that were controlled by Dare, Monteiro and other business associates. These properties were multi-family rentals where Dare and Monteiro would act as the property managers collecting the rents for local and out-of-area investors.

Ana Monteiro enjoys the presumption of innocence while her case is pending.

Albany County District Attorney P. David Soares made the announcement. 

“Mortgage Fraud is one of the crimes that lead to the downfall of our economy, and I commend the New York State Police for their foresight in identifying and pursuing the case against Aaron Dare years before the national implications of these scams was known,” commented District Attorney David Soares. “Although I am very pleased with the plea today, there is still a great deal of work that must be done to address the legal issues associated with the title fraud committed by Dare and his associates. These cases are complex and require a special expertise that the investigators and auditors from the New York State Police Financial Crimes Unit have developed through their diligent investigation of this case. I commend the New York State Police and the New York State Banking Department for their commitment to justice for the home owners of Albany County and hope that the resources remain available to uncover and prosecute additional scams throughout Albany County and New York State.”

The plea comes after a joint investigation by the New York State Police, the New York State Banking Department, the New York State Insurance Frauds Bureau, the New York State Tax Department, the Albany County Clerk’s Office, the Albany Housing Authority and the Federal Bureau of Investigation. Financial Crimes Bureau Chief Chris Baynes is handling the prosecution of both Dare and Monteiro.

Allison Tussey

Posts Google+

One response to New York Man Pleads Guilty to Mortgage Fraud

  1. He shouldnt have been given a plea deal.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>