Archives For inflated income

Freddy Orjuela, Sr., 49, Sarasota, Florida, was sentenced to two years in federal prison and was ordered to pay $960,020 in restitution for making false statements in a mortgage loan application to a federally insured financial institution. As part of the sentence, the Court also entered a money judgment in the amount of $1,475,950, the proceeds of the fraud.

A jury found Orjuela guilty on December 14, 2016, following a three- day trial.

According to court documents, Orjuela submitted a mortgage loan application to Century Bank on which he knowingly and willfully overstated his income, understated his liabilities, and falsely denied he had declared bankruptcy within the past seven years.

U.S. District Judge James D. Whittemore sentenced Orjuela.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Callan Albritton and Bob Mosakowski.

Ray M. Mubarak, 56, Knoxville, Tennessee, was sentenced to serve 57 months in prison for conducting a scheme to defraud financial institutions and engaging in an unlawful monetary transaction with fraudulently-obtained loan proceeds.  He was also ordered to pay $1,993,938.44 in restitution to three banks and a title insurance company that lost money as a result of the scheme.

Mubarak pleaded guilty in May 2015 to federal charges stemming from his scheme to defraud multiple banks into loaning him over $6 million. He submitted false tax returns and personal financial statements which grossly inflated his income and net worth in order to qualify for the loans. Mubarak also admitted to defrauding the banks by causing them to rely on a fraudulent title opinion letter and forged loan closing documents and deeds.

The trial for Mubarak’s co-defendants, Dianna Mubarak and Blythe Bond Sanders, III, is scheduled for March 1, 2016.

Marbarak was sentenced by the Honorable Pamela L. Reeves, U.S. District Judge.  The investigation was conducted by the Internal Revenue Service – Criminal Investigation and Federal Bureau of Investigation.  The investigation and prosecution of Mubarak was coordinated with the Office of the District Attorney General, 6th Judicial District.  Matthew T. Morris, Assistant U.S. Attorney, represented the United States.

Steven A. Crites, 44, Martinsburg, West Virginia, was sentenced to one day in prison followed by one year of supervised release for making a false statement on a loan application.

Crites applied for a loan with Wells Fargo Bank and falsely indicated that his monthly income was $29,000. In fact, his monthly income was $2,833.33. He pled guilty in March 21015 to one count of “False Statement on Loan Application.”

United States Attorney William J. Ihlenfeld, II, announced the sentence.  Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the inquiry.

Chief U.S. District Judge Gina M. Groh presided.

Jason Calabrese, 44, Watertown, Connecticut was sentenced to six months of imprisonment, followed by three months of home confinement and two years of supervised release, for his involvement in a series of fraudulent mortgage loan applications involving a straw borrower. Calabrese also was ordered to pay a $3,000 fine and $400,585 in restitution.

According to court documents and statements made in court, in November 2005, Calabrese ’s co-conspirator, Thomas Provenzano, obtained a $923,200 loan to purchase a lakefront home located at 27 Palmer Road, Morris, Connecticut, for more than $1.1 million, despite lacking the income to pay off the mortgage. The 27 Palmer Road property was owned by an entity controlled by Ryan Geddes, another co-conspirator. Continue Reading…

Glorvina Constant, 36, New Haven, Connecticut, was sentenced  to one year of probation for participating in a mortgage fraud scheme.  Her husband, Jason Sheehan, 41, New Haven, Connecticut, was sentenced to 37 months in prison for a bankruptcy and tax fraud scheme involving his company, Infinistaff, LLC.  As part of that scheme, Constant received Infinistaff payroll checks totaling $354,000 during the pendency of Infinistaff’s bankruptcy proceedings even though she performed no work for the company. Continue Reading…

Michael P. O’Donnell, 53, mortgage broker, Middleton, Massachusetts was convicted of one count of bank fraud after a three-day bench trial before the Honorable Douglas P. Woodlock, United States District Judge.  Judge Woodlock scheduled sentencing for October 20, 2015. Continue Reading…