Dean Rossi, 49, Warrington, Pennsylvania, was arrested in connection with an alleged mortgage fraud scheme for misappropriating funds from real estate closings intended for paying off mortgages.
Rossi, a real estate investor who owned numerous low-income properties throughout the Philadelphia area, was charged by indictment, now unsealed, with conspiracy, mail fraud affecting a financial institution, and bank fraud.
The indictment alleges that Rossi misappropriated in excess of $643,000 from real estate closings. After obtaining bank loans to purchase or refinance residential properties, Rossi allegedly teamed up with title/closing agents to divert a substantial portion of the loan proceeds. According to the indictment, Rossi received cash from the settlements that otherwise should have been used to pay off prior mortgages and tax liens on certain properties. To prevent the scheme from being detected, Rossi allegedly continued to cause payments to be made on the prior existing mortgages years after those loans were supposed to have been paid in full.
If convicted, the defendant faces a possible advisory sentencing guideline range of 46 to 57 months in prison, up to five years of supervised release, a fine of up to $4 million, and a $400 special assessment.
United States Attorney Zane David Memeger announced the indictment.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.