Danny Noble, 49, Baldwin, New York was sentenced today to 4.5 to nine years in prison in connection with illegally transferring the titles of seven houses in Brooklyn, New York and two in Queens, New York from their true owners to himself or a corporation, then renting out some of the properties and selling others.

According to the indictment, between June 29, 2010 and March 31, 2015, the defendants falsely transferred title to seven Brooklyn properties: 71 Carlton Avenue, 104 Vanderbilt Avenue, 45 North Oxford Street and 70 Clermont Avenue, Fort Greene,; 1391 East 95th Street in Canarsie, 357 Jefferson Avenue in Bedford-Stuyvesant; 729 Essex Street in East New York all in Brooklyn, New York and two properties in Queens, New York: 94-05 108th Street in Jamaica and 187-05 Liberty Avenue in Hollis.

Five of the properties were transferred from the actual homeowners to Noble, according to the indictment, three were transferred to 69 Adelphi Street, LLC, and one to a third party. The defendants allegedly targeted the properties because the owners did not live in the houses and rarely visited them.

Once the titles were transferred, according to the indictment, the defendants carried out various scams in order to cash in on them. For example, Noble maintained control of 45 North Oxford Street, a recently renovated brownstone in Fort Greene, whose owner lived outside of the United States. Noble rented out two apartments in the brownstone, collecting $1,500 a month in rent for each of them. He also maintained control of the two houses in Queens, renting them out for various amounts.

In another facet of the scheme, concerning 1247 Putnam Avenue, Brooklyn, New York, Noble filed a fraudulent satisfaction of mortgage.

Furthermore, for example, with respect to 71 Carlton Avenue, 104 Vanderbilt Avenue, 70 Clermont Avenue, and 1391 East 95th Street, the defendants transferred the properties’ titles into the names of other, third parties.

Noble pleaded guilty to first-degree criminal possession of stolen property and fourth-degree conspiracy before Brooklyn Supreme Court Justice Danny Chun on April 27, 2016 and was sentenced today to an indeterminate term of 4.5 to nine years in prison. His co-defendant, Romelo Grey, 41, Freeport, New York, pleaded guilty to falsifying business records on August 16, 2016, and was sentenced to 1.5 to 3 years in prison.

Brooklyn District Attorney Eric Gonzalez made the announcement.

The District Attorney said that, according to the investigation, the scheme was discovered after Grey and Noble transferred the title to the Canarsie house at 1391 East 95th Street to a third party. Grey visited the house with the buyer to inspect it, and told the tenants living there that they had to move out. The buyer then began renovating the house and those workers caught the eye of an employee of a business across the street, which was actually owned by the true owner of 1391 East 95th Street. That employee called the owner of the property, who called police. Further investigation led to the defendants’ connections to the other properties.

As part of the scheme, Noble, the leader, filed false documents with the New York City Department of Finance, Office of the City Register, which maintains land records and other real property filings in New York City, including records relating to ownership and encumbrances, such as liens and mortgages.

District Attorney Gonzalez said, “In Brooklyn, we take real estate scams very seriously. The houses targeted in this fraud are worth millions of dollars. My prosecutors and investigators worked diligently to expose this fraudulent scheme and bring this defendant to justice.”

The case was prosecuted by Assistant District Attorney Richard Farrell, Chief of the District Attorney’s Real Estate Fraud Unit, under the overall supervision of Assistant District Attorney Patricia McNeill, Deputy Chief of the Investigations Division.

Marilyn Sanchez, 49, Brooklyn, New York was sentenced today for filing two fraudulent deeds and supporting documents with the New York City Register’s Office in order to fraudulently acquire ownership of two separate residential homes in Brooklyn, New York.

According to the indictment and statements made at Sanchez’s arraignment in Kings County Supreme Court, in January 2016 Marilyn Sanchez illegally transferred ownership of 477 Christopher Avenue, Brownsville, Brooklyn, New York from the lawful owners to herself by recording a deed and five supporting documents containing forged signatures with the New York City Register’s Office.

Additionally, in November 2016, Sanchez illegally transferred ownership of 271 East 32nd Street, East Flatbush, Brooklyn, New York by recording a deed and five supporting documents containing the forged signatures of the lawful owners with the New York City Register’s Office.

In both instances, the owners never signed the deed nor the supporting documents and they never gave Sanchez, or anyone else, permission to sign on their behalf.

On October 5, 2018, Sanchez pleaded guilty to two counts of Grand Larceny in the Second Degree, a class C felony, before the Honorable Judge Miller in Kings County Supreme Court.

Sanchez was sentenced to 60 days in jail, followed by five years of probation. Sanchez also agreed to transfer ownership of the two property deeds back to the lawful owners. Today’s sentencing marks the first deed theft ruling resulting from an OAG investigation.

Attorney General Letitia James made the announcement.

Too often scammers turn the American Dream of homeownership into a nightmare,” said Attorney General Letitia James. “I’m pleased our office’s investigation has resulted in the return of these stolen deeds to their rightful owners. No one should have to worry about their property being stolen by scammers, and I encourage New Yorkers to follow my office’s tips to help protect themselves from potential foreclosure scams. I remind anyone who tries to harm hardworking New Yorkers that we will hold you accountable.”

The DOF Office of the Sheriff remains committed to investigate and arrest those responsible for deed fraud,” said New York City Sheriff Joseph Fucito. “The Attorney General’s prosecution of this case sends a strong message about the severity of the crime and the commitment to protect the homes of all New Yorkers. I want to commend Sheriff’s Detectives Francesca Rosa and Nene Kodjoe for their efforts in this investigation.

After years of working with New York homeowners, we’ve seen hundreds of scam and fraud cases, many of which result in major losses for families and their communities. But deed fraud cases are some of the most painful and complicated, because homeowners are often forced to fight for years to regain their properties,” said Christie Peale, CEO/Executive Director for the Center for NYC Neighborhoods. “We congratulate the Attorney General’s Office here in making sure that these homes were returned to their lawful owners. The OAG’s significant investments in fighting mortgage scams and deed theft through education and prosecution are particularly welcome, given how easy it is for bad actors to steal homes from hardworking families.”

Launched in December 2016 by the Attorney General’s office, the Foreclosure Rescue Scam Prevention Initiative is a grant program focused on enhancing outreach, education, and referral services for homeowners at risk of fraudulent foreclosure rescue schemes. The Foreclosure Rescue Scam Prevention Initiative is part of the office’s broader efforts to direct resources to at-risk homeowners, including investing $130 million in the Homeowner Protection Program (HOPP). Since 2012, HOPP has provided free, high-quality assistance to over 90,000 families to help avoid foreclosure of their homes.

To protect yourself from becoming a victim of a foreclosure rescue scam, Attorney General James offered the following tips:

  • Be skeptical of online ads or telephone callers that promise they can get you a mortgage modification or save your home from foreclosure. Only your bank or loan servicer can approve a loan modification.
  • Visit homeownerhelpny.com for information on how to avoid or report scams.
  • Do not give your personal financial information, such as your bank account number, social security number, or the name of your loan servicer, to a caller offering to help save you from foreclosure. Your bank will already have this information.
  • Never pay an up-front fee for mortgage-related services. It is a violation of New York law to charge upfront fees for such services, and violations should be reported to the Attorney General’s hotline at 1-855-HOME-456.
  • If you believe you have been scammed by a foreclosure rescue operator or a debt relief organization, submit a complaint to the New York State Attorney General’s Office: ny.gov/consumer-frauds/Filing-a-Consumer-Complaint

The case is being handled by Assistant Attorneys General Don Nguyen and Herman Wun of the Public Integrity Bureau, under the supervision of Real Estate Enforcement Unit Chief Travis Hill and Public Integrity Deputy Bureau Chief Stacy Aronowitz. The Criminal Justice Division is led by Chief Deputy Attorney General José Maldonado.

The Attorney General’s investigation was conducted by Investigator Walter Lynch under the supervision of Deputy Chief John McManus. The Investigations Bureau is led by Chief John Reidy.

The Attorney General thanks the New York City Sheriff’s Office for its assistance on this matter.

 

Hasan Hussain, 57, New Jersey, mastermind of mortgage fraud scheme lands unlucky prison sentence. A man described by prosecutors as the mastermind of a mortgage fraud scheme that defrauded homeowners, investors and banks of nearly $1.5 million has been sentenced to more than 13 years in prison.

Source: N.J. mastermind of mortgage fraud scheme lands unlucky prison sentence | nj.com

Alysia Franco, also known as Martha Orozco, was indicted for her alleged involvement in a scheme to steal closing funds during real estate purchase transactions.

In September 2015, the FBI Phoenix Field Division’s Tucson Resident Agency received a report alleging the theft of closing funds in a real estate transaction from a Tucson, Arizona resident.  The alleged victim notified the FBI that they wired their closing funds to a bank account in the name of SkySea Logistics after receiving an email instructing them to do so, purportedly from a party to the real estate closing.  Unbeknownst to the victim, Skysea Logistics Services was not a party to the real estate transaction and was allegedly used as a front business by Franco, who allegedly provided SkySea’s business and account information to others for use in receiving the proceeds of criminal activity between September 2013 and September 2015 as alleged in the indictment.

The resulting investigation by the FBI uncovered another victim in Tucson, Arizona who transferred closing funds to SkySea Logistic Services.  The funds wired by both victims totaled $391,500.00.  The Attorney General’s Office seized the full amount of the funds from SkySea’s bank account and returned the full amount of what was allegedly stolen back to the victims.

The indictment alleges Franco committed two counts of Theft, one count of Money Laundering in the Second Degree, one count of Illegally Conducting an Enterprise, and one count of Conspiracy.

Attorney General Mark Brnovich made the announcement.

This matter was investigated by the FBI Phoenix Field Division’s Tucson Resident Agency.  Assistant Attorney General Rachel R. Heintz is prosecuting the case.

All defendants are presumed innocent until convicted in a court of law.

 

John F. Iacono, a/k/a Vito Yodice, 46 and Shpresa Gjekovic, a/k/a Hope Gjekovic a/k/a Hope Iacono a/k/a Hope Yodice a/k/a Shpresa Hadzovic, 32, have been charged with defrauding banks throughout New York State and laundering those criminal proceeds to further their scheme.

A joint investigation by the Attorney General’s Criminal Enforcement and Financial Crimes Bureau and the New York State Police revealed that Iacono and Gjekovic allegedly utilized shell companies, provided fake bank statements, W2s, paystubs, and tax returns, and forged cashier checks in order to solicit over $1.3 million in loans from multiple banks across the upstate region.

According to the indictment and statements made by the prosecutor at arraignment, between April 2016 and March 2017, Iacono and Gjekovic allegedly applied for mortgages, a construction loan, personal lines of credit, personal loans, a commercial loan, a debt consolidation loan, and a Home Equity Line of Credit (HELOC) by grossly overstating their income, assets, and source of funds – all supported by fraudulent documentation. The couple also allegedly created entities, including but not limited to JF Iacono, LLC and Iacono, LLC, and purported to have worked for them for years. In reality, these companies were created just days prior to their submission of applications for hundreds of thousands of dollars in bank funds. In total, the couple stole over $460,000 from three financial institutions, and attempted to steal over $860,000 in additional proceeds from five financial institutions.

The investigation further revealed that Iacono and Gjekovic allegedly supplied over $125,000 in counterfeit cashiers checks to financial institutions, law firms, title companies, and the sellers of a Schoharie County, New York property in order to secure financing and establish residence in the area. Iacono and Gjekovic allegedly intended to turn the Schoharie County property into a swingers club, but after obtaining the property, instead rented it out as a hunting cabin and purported to raise money for children in need. The couple allegedly utilized online postings, including on Facebook and Airbnb, to advertise the rental property.

In addition, Iacono and Gjekovic allegedly concealed from financial institutions outstanding judgments against them totaling in excess of $1.4 million. Moreover, the couple allegedly laundered fraudulently obtained loan proceeds to fund deposits and cash to close on the real estate transactions, utilizing at least five financial institutions during the course of the year-long scheme.

The defendants also allegedly created a personal financial statement showing net worth in excess of $1.1 million, with cash on hand of $400,000, while in reality their account balances were in the negative. The defendants allegedly supplied false bank statements showing the purported assets to support this claim. The balances on these statements were allegedly grossly inflated, as the couple never had more than a few thousand dollars in the accounts – the vast majority of which was from other loans.

Both defendants were arrested on a 19-count indictment, including charges of Residential Mortgage Fraud in the Second Degree, Grand Larceny in the Second and Third Degrees, and Money Laundering in the Third Degree.

Iacono and Gjekovic are each charged in the Attorney General’s indictment with the following 19 felonies: Residential Mortgage Fraud in the Second Degree, a class C felony (one count); Grand Larceny in the Second Degree, a class C felony (two counts); Money Laundering in the Third Degree, a class D felony (two counts); Grand Larceny in the Third Degree, a class D felony (one count); Attempted Residential Mortgage Fraud in the Second Degree, a class D felony (one count); Attempted Grand Larceny in the Second Degree, a class D felony (three counts); Criminal Possession of a Forged Instrument, a class D felony (four counts); Falsifying Business Records in the First Degree, a class E felony (four counts); and Scheme to Defraud in the First Degree, a class E felony (one count).

Iacono was arraigned on December 20, 2018 before Schoharie County Court Judge George R. Bartlett, III. Bail was set in the amount of $175,000 cash or $350,000 bond. Gjekovic was arraigned on December 24, 2018 before Hon. Bartlett and bail was set in the amount of $75,000 cash or $150,000 bond. The defendants are scheduled to appear back in court January 16, 2019.

If convicted of all counts, Iacono and Gjekovic could each face up to 10 to 20 years in state prison.

Attorney General Barbara D. Underwood and State Police Superintendent George P. Beach II made the announcement.

As we allege, these defendants grossly inflated their assets and forged a number of documents in order to defraud multiple New York banks and attempt to steal over a million dollars,” said Attorney General UnderwoodWe have no tolerance for those who try to defraud New Yorkers in order to line their own pockets.”

Superintendent George P. Beach II said, “This couple concocted a series of devious schemes to knowingly defraud financial institutions out of hundreds of thousands of dollars. I commend the Attorney General’s Office, our State Police Financial Crimes Unit and other law enforcement partners for their hard work in exposing this fraud. This indictment should serve as a reminder that those who seek to carry out such deliberate scams will be held accountable for their crimes and brought to justice.”

The charges are merely allegations and the defendants are presumed innocent unless and until proven guilty in a court of law.

Attorney General Underwood thanks the New York State Police Financial Crimes Unit, as well as Schoharie County District Attorney Susan J. Mallery, for their valuable assistance on this investigation.

The case is being prosecuted by Assistant Attorney General Philip V. Apruzzese of the Criminal Enforcement and Financial Crimes Bureau, with the assistance of Legal Support Analysts Kira M. Russom, Caitlin Carmody, and Supervising Analyst Paul Strocko. The OAG investigation was conducted by Investigator Mark J. Terra, under the supervision of Supervising Investigator Mark Spencer and Deputy Bureau Chief Antoine Karam. The Criminal Enforcement and Financial Crimes Bureau is led by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph D’Arrigo. The Criminal Division is led by Chief Deputy Attorney General Alvin Bragg.

 

George French Jones, Jr., 50,  Santa Monica, California, pled guilty on December 21, 2018, to mail fraud and identity theft charges in connection with a mortgage fraud scheme involving two waterfront residential properties in Broward County, Florida.

According to information disclosed in open court, in early 2018 Jones identified two residential properties in Fort Lauderdale, Florida, which Jones fraudulently pledged as collateral in order to obtain mortgage loans from a private lender.

The two properties were owned by corporate entities that Jones had no affiliation with and which were in fact owned by independent third parties. To execute his fraudulent loan scheme, Jones created fake identification documents and email addresses in order to impersonate officers of the corporate owners of the two properties. Jones then submitted bogus loan applications and other documents to a private lender in which he pretended to be the owners of the Fort Lauderdale, Florida properties. As a result of this scheme, Jones defrauded the private lender out of approximately $1.7 million dollars.

Jones pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, Jones faces a maximum possible sentence of 22 years in prison.  He is scheduled to be sentenced by U.S. District Judge Robert N. Scola on March 1, 2018, at 8:30 a.m.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI) made the announcement.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI.  This case is being prosecuted by Assistant U.S. Attorney Christopher Browne. Assistant U.S. Attorney Nalina Sombuntham is handling the asset forfeiture aspects of the prosecution.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

The first Filipina judge in Cook County broke down in sobs in a federal courtroom Thursday before being sentenced to a year in prison for her role in a $1.4 million mortgage fraud scheme that occurred years before she took the bench.

Source: Ex-judge given 1 year in prison for mortgage fraud scheme: ‘I’m an embarrassment!’ – Chicago Tribune

Kevin Morgan, 42, Pittsford, New York, pleaded guilty today to conspiracy to commit bank fraud, which carries a maximum penalty of five years in prison and a fine of $250,000.

Between March 2011 and June 2017, the defendant, along with co-defendants Todd Morgan, Frank Giacobbe, Patrick Ogiony, and others, conspired to defraud financial institutions, including UBS Securities LLC, Arbor Commercial Mortgage LLC, and Berkadia Commercial Mortgage, LLC

Kevin Morgan was employed as a Vice President at Morgan Management, LLC, a real estate management company that managed more than 100 multi-family properties.  Todd Morgan also was employed by Morgan Management as a Project Manager. Kevin and Todd Morgan worked with Frank Giacobbe, who owned and operated Aurora Capital Advisors, LLC, a mortgage brokerage company, and Patrick Ogiony, an Aurora employee, to secure financing for properties managed by Morgan Management or certain principals of Morgan Management.

Kevin Morgan and his co-defendants provided false information to financial institutions and government sponsored enterprises that overstated incomes of properties managed by Morgan Management or certain principals of Morgan Management. This resulted in the financial institutions issuing loans for larger amounts than the financial institutions would have authorized had they been provided with truthful information.

The defendants misled the financial institutions regarding the occupancy of properties. For example, Kevin Morgan: conspired to provide false rent rolls to lenders and appraisers on a variety of dates, overstating either the number of renters in a property and/or the rent paid by occupants; conspired to provide false and inflated income statements for the properties; and worked with others to deceive inspectors into believing that unoccupied apartments were, in fact, occupied.

In one such instance, Kevin Morgan and his co-defendants provided false information to Berkadia Commercial Mortgage, LLC, in connection with Rochester Village Apartments at Park Place, a multi-family residential community owned by certain Morgan Management principals. The false information included inflated income derived from storage unit rentals, inflated reports of rental income, and reporting apartment units as occupied before certificates of occupancy were obtained for those units.

In addition, Kevin Morgan and his co-defendants made misrepresentations to conceal from the lending financial institutions that Morgan Management used a portion of the loan proceeds for purposes other than that disclosed in the loan application. Loan funding was used to maintain or improve other properties managed by Morgan Management, and to satisfy debts associated with other properties managed by Morgan Management. For example, the defendants included a fictitious $2.5 million debt in a loan application purportedly owed to a Morgan Management controlled entity and created a fabricated payoff letter for that debt to increase the amount of the loan in connection with a property known as Autumn Ridge.

U.S. Attorney James P. Kennedy, Jr. made the announcement.

History has shown us the havoc that can be wrought when fraud takes place in the mortgage industry,” noted U.S. Attorney Kennedy. “This investigation, and today’s plea, protect that industry from fraud and those who invest in securities which are backed by mortgages.

From day one, our investigation has focused on protecting the residential and commercial financing industry,” said Gary Loeffert, Special Agent-in-Charge of the FBI’s Buffalo Division. “With Kevin Morgan’s plea today, we have advanced our efforts to safeguard the tens of thousands of investors who own mortgage-backed securities.

Robert Manchak, Acting Special Agent in Charge for the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General, said, “The financing of multifamily loans is a significant segment of Fannie Mae’s and Freddie Mac’s portfolio.  As our commitment to this case demonstrates, FHFA-OIG will work with our partners in law enforcement to investigate and hold accountable those who subject the entities regulated by FHFA to fraud, waste, or abuse.

Charges are pending against defendants Frank Giacobbe, Patrick Ogiony, and Todd Morgan. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Robert Manchak, Northeast Region.

Sentencing will be scheduled at a later date before Judge Wolford.

Edward Sypher, Jr., 41, Scarsdale, New York, formerly the Chief Financial Officer of Long Island mortgage lender Vanguard Funding, LLC (Vanguard), was sentenced today to 18 months’ imprisonment to be followed by three years’ supervised release for conspiring to commit wire and bank fraud in connection with the diversion of warehouse loans that Vanguard had fraudulently obtained purportedly to fund home mortgages and mortgage refinancing.

Vanguard was a 33-branch, mortgage lending institution licensed in California, Connecticut, Florida, Georgia, Maryland, Massachusetts, North Carolina, New Jersey, New York, Pennsylvania and Washington.  Between August 2015 and March 2017, Sypher and his co-conspirators at Vanguard engaged in a multi-million dollar fraud scheme by falsely representing that the loan proceeds would fund specific mortgages, or refinance specific mortgages, for Vanguard clients.  Instead, Sypher and his co-conspirators diverted the funds to pay personal expenses and compensation, and to pay off loans they had previously obtained through fraudulent loan applications. http://www.mortgagefraudblog.com/top-executives-plead-guilty-8-9-million-warehouse-loan-fraud/

The amount of restitution will be determined by the Court at a later date.  Sypher was also ordered to pay $22,150.45 in forfeiture.

On December 10, 2018, Matthew T. Voss, Vanguard’s former Chief Operating Officer, was sentenced to 24 months’ imprisonment for his role in the scheme.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Maria T. Vullo, Superintendent, New York State Department of Financial Services (DFS), announced the sentence.

Edward Sypher, Jr., has been punished for deceiving his banking partners in order to divert millions of dollars to his own benefit and that of other Vanguard executives,” stated United States Attorney Donoghue.  “This Office, working hand-in-hand with our law enforcement partners, will continue to vigorously investigate and prosecute business executives who choose to commit fraud as a means of getting ahead at the expense of the businesses and residents of our district.

When fraudsters treat investors like their own personal ATMs, using funds invested in good faith to line their own pockets, pay for personal expenses, and repay other fraudulent loans, confidence in the integrity of our financial systems suffers,” stated FBI Assistant-Director-in-Charge Sweeney.  “Thanks to the diligent work of the FBI and our partners, Sypher will be held accountable for his crimes.”

DFS is proud to have worked with the U.S. Attorney’s office and other law enforcement partners to bring this defendant to justice,” said DFS Superintendent Vullo.  “We will continue to combat the serious issue of fraud in order to safeguard the industry and protect consumers.”

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Whitman G.S. Knapp and Elizabeth Losey Macchiaverna are in charge of the prosecution.

David John Dziedzic, 55, Scottsdale, Arizona, was sentenced on December 17, 2018 to 30 months’ imprisonment for his lead role in criminal activity related to the short sale of distressed mortgages, some of which were federally-insured.

Dziedzic operated the “Housing Angels” program through his company, Real Core Realty, LLC.  He aggressively marketed a program designed to help homeowners stay in their homes following a short sale, through an undisclosed sale-leaseback program with “angel” investors.   Through this program, he typically received commissions from both the buyer and the seller in a short sale transaction. Dziedzic also recorded false secondary liens on more than 100 short sale properties to induce banks holding primary mortgages to pay off the false secondary mortgages, resulting in more than $100,000 in illegal profits as a result of the scheme.

Dziedzic’s wife, Heather Hamilton Dziedzic, 43, pleaded guilty to a related misdemeanor charge, and was also sentenced for her role in the offense.  She will also surrender her real estate license.  She received a two-year term of probation and a deferred disposition on a felony securities charge, which may be dismissed upon successful completion of the probationary term.

Dziedzic had previously pleaded guilty to one count of communication of unregistered securities, and a separate count involving the failure to notify the Treasury Department of his collection of more than $10,000 in cash from a real estate customer.  

As part of the sentence, Dziedzic must give up his real estate license.  He paid $107,280 in restitution for the actual loss caused when 40 banks paid out on the false liens, and he was also ordered to pay a money judgment of $142,000 over time, in order to disgorge additional profits.  As part of the plea agreement, Dziedzic, a Canadian national who naturalized as a U.S. citizen during the investigation, agreed to cooperate in his denaturalization, because he had failed to disclose the existence of the investigation to U.S. Citizenship and Immigration Services during the naturalization process.

The investigation in this case was conducted by Internal Revenue Service – Criminal Investigation; the Department of Housing and Urban Development, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Federal Bureau of Investigation. The prosecution was handled by Gary M. Restaino and Monica B. Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.