Filippos “Filip” Milios, 54, Newington, Connecticut, was arrested on a federal criminal complaint charging him with bank fraud stemming from his alleged involvement in an extensive mortgage fraud scheme in the greater Hartford, Connecticut area.
According to statements made in court, it is alleged that Milios led and organized a multi-year mortgage fraud scheme to purchase and sell houses using straw borrowers and false or fictitious loan applications, employment verifications, bank statements, and pay stubs. Milios purchased numerous homes and then sold them at a significantly higher sales price to straw borrowers that he and his co-conspirators recruited. In addition, it is alleged that Milios used his own funds to make the down payments on behalf of the borrowers and that he made payments outside of closing to the straw borrowers and his co-conspirators.
This alleged scheme involved more than 40 fraudulent mortgages exceeding $10 million and losses exceeding $5 million.
Following his arrest, Milios appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $100,000 bond.
U.S Attorney for the District of Connecticut David B. Fein announced the arrest.
U.S. Attorney Fein noted that the investigation into these alleged schemes is ongoing and asked individuals who have information that may helpful to the investigation to contact the U.S. Department of Housing and Urban Development-Office of Inspector General at (860) 240-4800.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. The defendant is entitled to have this matter presented to a grand jury and, in the event an indictment is returned, he is entitled to a trial at which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case is being investigated by the U.S. Department of Housing and Urban Development-Office of Inspector General, the Internal Revenue Service, the United States Postal Inspection Service, and the FBI. The case is being prosecuted by Assistant U.S. Attorney David T. Huang and Paul H. McConnell.
The announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.