Associate Attorney General Tony West outlined the Justice Department’s approach to resolving the remaining cases related to Residential Mortgage-Backed Securities (RMBS) misconduct that contributed to the financial crisis. West declared that the department would not hesitate to bring litigation against these firms if these principles were not met.
Karl Oreste, 56, Miramar, Florida, pled guilty before U.S. District Judge Robert N. Scola, Jr., to one count of conspiracy to commit wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1349. The defendant and his co-conspirators operated a multi-million dollar straw buyer mortgage fraud scheme.
Robert Serao, 48, Bayville, New Jersey, who used his position as a loan officer of Wells Fargo Home Mortgage Inc., to get the company to release more than $4.6 million on fraudulent mortgage loan applications was sentenced to 24 months in prison for his role in a $40.8 million mortgage fraud conspiracy.
Thomas G. France, 44, Strongsville, Ohio, a real estate agent, was sentenced to more than 10 years in prison for his role in a $3.3 million mortgage fraud scheme involving six properties in Medina, Ohio.
Pedro “Pete” Benevides, 44, Astatula, Florida, pleaded guilty to conspiracy to commit bank fraud and faces a maximum penalty of 30 years in federal prison for his role in obtaining 20 commercial and residential loans based on false information and documents.
Craig A. Howell, 53, Sylvester, Georgia, was sentenced to serve 12 months in federal prison for making false statements to a federally insured financial institution by acting as a straw borrower.
Thomas Edward Rosensteel III, 41, Excelsior, Robert Scott “Rod” Aslesen, 65, Little Canada, Justin Joseph Christenson, 34, East Bethel, and Dale Russell Wurzinger, 57, Burnsville, Minnesota, have been indicted and charged in connection with the Split Rock Realty mortgage fraud investigation.
Jason George Rivera, Jr., 35, and Marc Christopher Harmon, 41, both of the East Bay, California, have been indicted and charged with eight counts of conspiracy and wire fraud for allegedly promising investors that their money would be used to fund efforts to purchase or trade collateralized mortgage obligations, fund short-term loans to banks, or invest in other ways.
The Federal Trade Commission is mailing refund checks totaling $499,701.84 to 229 consumers who paid the Lucas Law Center an advance fee for mortgage loan modifications the company falsely claimed it would obtain for them.
Joseph Daniele, 42, Tampa, Florida, was sentenced by U.S. District Judge Elizabeth A. Kovachevich to 10 years and 1 month in federal prison for conspiracy to commit wire fraud. Daniele illegally flipped approximately 80 homes across Florida using a “no money down” scam.