Archives For Mortgage Fraud

Christopher Castle, 57, formerly of Petaluma, California was found guilty on Monday of 35 counts in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales.

According to court documents, between April 22, 2010, and November 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.

As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.

Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.

The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.

With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.

In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.

In May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.

The U.S. Marshals Service successfully conducted this extradition during the height of the pandemic,” said Acting U.S. Marshal Lasha R. Boyden for the Eastern District of California. “To minimize exposure, the extradition was conducted expeditiously with minimal time on the ground. All safety precautions were implemented, and Mr. Castle was extradited back to the United States without incident.

This was the first jury trial in the Eastern District of California since the onset of the COVID-19 pandemic in March 2020.

Acting U.S. Attorney Phillip A. Talbert made the announcement.

Castle decided to game the system so that he could profit in the midst of the then looming financial crisis, to which his actions contributed,” said Acting U.S. Attorney Talbert. “We are gratified by the jury’s verdict for this significant fraud scheme.

Mortgage fraud is not a victimless crime. Identifying and investigating those who abuse the system for their own personal gain ensures the mortgage system is safer and fairer for everyone. The FBI affirms our commitment to pursuing those who leverage false statements made to financial institutions to enrich themselves while threatening the stability of the banking system and taking advantage of distressed homeowners desperate to retain their homes or start anew without significant losses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We thank our domestic and international law enforcement partners for their continued efforts to ensure fugitives will face justice regardless of the distance traveled or time that has elapsed.”

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Tanya B. Syed are prosecuting the case.

Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, California pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, Benicia, California pleaded guilty to conspiracy. On July 14, 2017, Laura Pezzi, Roseville, California pleaded guilty to falsely making writings of lending associations.

In related cases, on September 4, 2015, Tisha Trites and Todd Smith, both of San Diego, California pleaded guilty to related charges.

Two other co-defendants, George B. Larsen and Larry Todt, were convicted of conspiracy and bank fraud following a jury trial in December 2017.

Co-defendant John Michael DiChiara passed away on Aug. 24, 2019, while awaiting trial.

Castle is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on October 28, 2021, at which time he faces a maximum penalty of 30 years in prison and a $1 million fine for bank fraud, 10 years in prison and a $250,000 fine for falsely making documents of a lending association, and five years in prison and a $250,000 fine for conspiracy. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Patrick Joseph Soria, 35, West Hollywood, California was sentenced today to 152 months in federal prison for orchestrating a real estate fraud scheme that victimized more than 2,000 homeowners, involved fraudulent filings that affected the title to properties across the country and caused more than $7 million in losses.

From January 2015 to June 2018, Soria stole money from homeowners and would-be home buyers through a two-pronged scheme.

Firstly, Soria hijacked title to properties through fraudulent title filings done at county recorders’ offices around the country. He faked the filings to make it appear that he owned the properties, and then “sold” the properties to victims who thought they were buying the homes from the true owner. In fact, Soria never owned the homes, and he instead used the victims’ “purchase” money for his own personal expenses, including escort services, stays at luxury hotels, and Bentley and Lamborghini car rentals.

In the second part of the scheme, Soria convinced homeowners that he could help them with their mortgages, either by assisting them with a loan modification or by taking over their mortgage from their lender, with the promised result, either way, of reducing their mortgage payments. He told them that he had achieved success in this area in the past, and he convinced them that he was trying to help them, often befriending them to gain their trust and give them hope.

After gaining the victims’ trust, Soria convinced homeowners to stop paying their real lender and to start paying him. Through yet more fraudulent filings, Soria deceived his victims into believing he had taken over their mortgages. He also falsely lulled victims into doing nothing to protect themselves when they started receiving foreclosure and eviction notices. Many of the homeowners targeted in the scheme lost their homes.

As part of the fraud, Soria used company names such as HBSC US and Deutsche Mellon National Asset LLC, designed to trick homeowners into thinking that these companies were real. He also took advantage of the complex mix of lenders, trustees, beneficiaries, and servicers in the mortgage market, and the assignments of mortgage loans between entities, to confuse homeowners and to make it seem as if he did in fact own the properties and mortgages.

More than 2,000 individuals were victimized through this scheme. Soria admitted in court documents that losses totaled more than $7.6 million. In addition to causing losses to individual homeowners, the fraud scheme also victimized numerous lenders who held mortgages on, or other interests in, properties targeted in the scheme.

The targeted properties were located nationwide, including in Texas, New York, Nevada, and in the California cities of Vernon, Beverly Hills, Santa Ana, Yorba Linda, Anaheim and elsewhere.

A restitution hearing is scheduled for October 25, 2021. Soria pleaded guilty on March 2, 2021 to one count of conspiracy to commit wire fraud and one count of contempt of court.

Soria was sentenced by United States District Judge Dale S. Fischer, who called Soria “a skillful conman who created a very sophisticated scheme.” Judge Fischer also stated, “This is not the largest case I have presided over in terms of dollars, but it is the most brazen and heartless.”

In a related matter, Soria committed numerous acts of contempt of court in a related civil case before Judge Fischer, Nationstar Mortgage LLC v. Patrick Soria, et al., 18-cv-03041-DSF-RAO (C.D. Cal.), including willfully spending funds subject to an asset freeze. The contempt resulted in his incarceration in 2018, and criminal charges filed by the Court in 2019 by way of an Order to Show Cause.

This matter was investigated by the FBI and the Federal Housing Finance Agency – Office of Inspector General, with assistance from the Los Angeles Police Department; the Beverly Hills Police Department; the Los Angeles County Sheriff’s Department; the San Joaquin County District Attorney’s Office, the Ventura County District Attorney’s Office; and the Orange County District Attorney’s Office.

Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section prosecuted this case.

 

Tammy Hamrin, formerly known as Tammy A. Cheek, 58, Virginia Beach, Virginia, the former president of an escrow and title company was sentenced today to 18 months in prison for misappropriating $715,000 of closing funds in connection with 48 real estate transactions for which she served as the settlement agent.

According to court documents, Hamrin was a licensed title and settlement agent and was the president, secretary, and treasurer of Preferred Escrow and Title, Inc. During 48 real estate transactions between January 2018 and approximately February 2018, Hamrin misappropriated $715,000 of closing funds that had been deposited by various lenders and individual buyers into the company’s escrow account. She did so by making seven unauthorized wire transfers of funds from the escrow account to certain entities at the request of a person with whom Hamrin had an online personal relationship.

During this period, Hamrin partially replenished the funds that she had misappropriated by depositing approximately $199,000 of her own money into the escrow account, resulting in a remaining shortage of approximately $516,000. As a result, all 48 closings were affected. Among others, losses were sustained by sellers, buyers, business entities, financial institutions, various lienholders, municipal clerks of court and treasurer offices, and a title insurance company.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-2.

Marvette Thompson Easterling, 54, Gaffney, South Carolina; Keylon Wright, 40, Simpsonville, South Carolina; and Joshua David Armato, 37, Georgia today admitted that they knowingly defrauded a program established to help homeowners at risk of mortgage loan default and foreclosure of thousands of dollars in a scheme that defrauded the federal government’s Troubled Asset Relief Program (TARP).

Evidence presented in court showed that through false and fraudulent pretenses, representations, and promises, Easterling obtained funds from SC Housing, a federally funded mortgage payment assistance program that provided eligible homeowners with temporary mortgage assistance so that they could avoid foreclosure and stay in their homes.  Easterling concealed and failed to notify SC Housing of monthly rental income she received for the property as well as the non-owner-occupied status of the property in order to receive and use federal funds to which she was not eligible.

Additional evidence presented in court further showed that Wright executed a similar scheme for a property in Mauldin, South Carolina, while Armato executed a similar scheme for a property in Simpsonville, South Carolina.  Wright and Armato concealed and failed to notify SC Housing of the non-owner occupied statuses of their properties and the rental of the properties to unrelated third parties in order to receive and use federal funds to which they were not eligible.

Acting United States Attorney M. Rhett DeHart made the announcement.

U.S. District Judge Bruce Howe Hendricks ordered each defendant to a sentence of time served followed by five years of supervised release and the repayment of the stolen funds for the felony charges.

With today’s sentencing, SIGTARP and the United States Attorney’s Office have brought justice for defendants who defraud and steal from the Hardest Hit Fund, a federal program that helps unemployed homeowners stay in their home,” said Special Inspector General Christy Goldsmith Romero.  “Easterling, Wright, and Armato separately lied to get thousands of federal dollars for mortgage assistance, concealing that they did not live in the house and concealing rental income.  Now they are convicted of fraud and must repay the stolen funds.”

Stealing from the federal government, particularly from programs that help the least fortunate in America, will not be tolerated,” said Acting U.S. Attorney DeHart.  “Our office appreciates the investigative work of the Special Inspector General for TARP (SIGTARP) and will continue to work with SIGTARP to protect American tax dollars.

The cases were investigated by SIGTARP, as an independent law enforcement agency used to investigate fraud, waste, and abuse related to the TARP bailout.

Assistant United States Attorney Winston Marosek prosecuted the cases.

Osbado Hernandez, 52, Avenel, New Jersey, a former Hudson County Sheriff’s officer, was charged for making false statements to a bank in connection with an application to discharge a mortgage through a fraudulent short sale.

According to documents filed in this case and statements made in court:

From September 2015 to Dec. 30, 2015, in order to induce a bank to discharge a mortgage on a property in Keansburg, New Jersey, Hernandez made false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he intended to vacate the property following the short sale. Hernandez fraudulently withheld information regarding the availability of funds in a savings account he failed to disclose to the bank. Hernandez also signed a sworn affidavit that he would not stay in the property for more than 90 days following the short sale, even though he intended to, and did, continue living at the property. As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.

The false statements charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million.

Hernandez appeared this afternoon via videoconference before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond.

Acting U.S. Attorney Rachael A. Honig made the announcement.

Acting U.S. Attorney Honig credited special agents with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.

The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

Casey David Crowther, 35, Fort Myers, Florida has been sentenced to three years and one month in federal prison for two counts of bank fraud, two counts of making a false statement to a lending institution, and two counts of money laundering.

At trial, a federal jury had found Crowther guilty of committing bank fraud, making a false statement to a lending institution, and two counts of money laundering on March 26, 2021, which were related to a PPP fraud scheme. Before the trial started, Crowther pleaded guilty to one count of bank fraud and one count of making a false statement to a financial institution, which were related to a mortgage fraud scheme. As part of the mortgage fraud scheme, Crowther created false bank statements to justify a loan he had used to purchase a nearly $1.3 million waterfront house in St. James City, Florida.

According to evidence at the trial, Crowther obtained a $2.1 million PPP loan by falsely stating that he had intended to use the money to make payroll and pay rent and utilities for his company Target Roofing and Sheet Metal, Inc. However, Crowther intended to use the money to enrich himself and, once the loan was obtained, quickly used the proceeds to make a series of personal purchases including a nearly $700,000 boat and a $100,000 payment to a former business partner. Crowther concealed the scheme by providing false explanations for the expenditures to his bank, calling the boat “equipment” and the payment to his former partner “payroll.” Under the terms of the PPP program, Crowther did not have to pay back the loan if he used at least 60% of the proceeds on payroll. To falsely make it appear he met that threshold, Crowther created dozens of fake employees to whom he purportedly paid wages: by adding multiple family members to his company’s payroll, even though they did not actually perform work; and, separately, by creating 39 other fake employees, for whom he obtained fake identification documents — including Social Security cards — that he provided to his company’s Human Resources to be placed in the files of the “employees.”

The court also ordered Crowther to forfeit $2,739,081.21, $630,482.37, and a 40’ catamaran boat, which were the proceeds of the Paycheck Protection Program (PPP) fraud and the mortgage fraud offenses.

This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorneys Trent Reichling and Michael V. Leeman. Assistant United States Attorney Suzanne Nebesky obtained the forfeitures.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

Yorce Yotagri, 54, Freeport, New York, was sentenced today to 12 months and one day in prison for participating in a conspiracy to carry out a $9 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a scheme known as “shotgunning”.

According to documents filed in the case and statements made in court:

Yotagri was a business partner of Jorge Flores of Oakdale, New York, and Jose Piedrahita of Freeport, New York two conspirators also charged in the indictment. From 2010 through February 2018, Yotagri, Flores, Piedrahita, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.

In August 2016, Yotagri lived at a property in Freeport, New York. A quitclaim deed was prepared that facilitated the transfer of ownership of the property to Yotagri and Piedrahita even though Piedrahita did not own the property.

In September 2016, with the Freeport, New York property now in the names of Yotagri and Piedrahita, the conspirators applied for a $290,000 HELOC from a victim bank in Yotagri’s and Piedrahita’s names using the property as collateral. Piedrahita’s contact information appeared on the HELOC application on the Freeport property, which also contained inflated income and assets for Piedrahita. On Dec. 2, 2016, based on the false representations contained in the application, the victim bank issued a HELOC to Piedrahita for $290,000. Piedrahita then disbursed the $290,000 to himself, Yotagri, and Flores. The HELOC funds were never repaid.

In January 2017, Flores called another victim bank and applied for a second HELOC in Piedrahita’s name for $250,000 – again using the Freeport property as collateral. This time Flores’ email address and phone number appeared on the HELOC application on the Freeport property. To demonstrate to the second victim bank that the property was unencumbered by any senior mortgages, Flores and Piedrahita sent several fraudulent documents to the victim bank to conceal the existence of or amounts owed on senior mortgages. The false documents the defendants submitted included a series of false payoff letters and fake checks from other banks, all submitted to deceive the victim bank into believing that the remaining value of the senior mortgages on the Freeport property was far less than what was actually owed.

On March 22, 2017, the second victim bank issued a HELOC to Piedrahita for $250,000.  Piedrahita then disbursed nearly the entirety of the HELOC funds to himself and Yotagri. The funds obtained by Piedrahita and Yotagri from the HELOC were not repaid and were overdrawn, causing losses to the second victim bank totaling approximately $290,000.

At the time the applications for the two HELOCS were made, there was not sufficient equity in the Freeport property to support the $540,000 in HELOC applications made by Flores, Piedrahita, and Yotagri.

The overall scheme, which included HELOC loans for approximately 17 different properties, resulted in over $9 million in losses to the victim banks.

Yotagri, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit bank fraud. Judge Vazquez imposed the sentence today in Newark federal court.

In addition to the prison term, Judge Vazquez sentenced Yotagri to three years of supervised release and ordered him to pay restitution of $580,048.

Acting U.S. Attorney Rachael A. Honig made the announcement.

Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), Northeast Region, under the direction of Special Agent in Charge Robert W. Manchak; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.

The charges and allegations against Yotagri’s co-defendants contained in the indictment are merely accusations, and they are presumed innocent unless and until proven guilty.

 

Marco Lurigio, also known as “Demetrio Cardone,” 45 and Sandy Lurigio, also known as “Janette Chavez,” 39, Downers Grove, Illinois,  a husband and his wife, have been charged in federal court in Chicago with participating in a mortgage fraud scheme that defrauded financial institutions out of at least $2.5 million.

The Lurigio’s owned several Illinois-based companies, including S&G Technologies Inc., O.C. Management Group Inc., Riverview Financial Inc., and Toro Management, Inc.  According to the indictment, the Lurigios recruited buyers to fraudulently obtain mortgage loans for properties on Chicago’s South Side by making and causing to be made materially false representations in documents submitted to financial institutions.  The false representations included documents and statements regarding, among other things, the buyers’ employment, income, assets, source of down payment, and intention to occupy the property as a primary residence, the indictment states.  In some instances, the Lurigios fraudulently claimed to lenders that the buyers were employed by one of the Lurigios’ companies, even though they knew that was untrue, the indictment states.  The alleged fraud scheme lasted from 2011 to 2014, the indictment states.

The indictment was returned Tuesday in U.S. District Court in Chicago.  It charges Marco Lurigio, and Sandy Lurigio with eight counts of financial institution fraud.  Arraignments have not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Michael Powell, Special Agent-in-Charge of the Chicago office of the U.S. Department of Housing and Urban Development, Office of Inspector General.  The government is represented by Assistant U.S. Attorneys Jason Yonan and Alejandro Ortega.

The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of financial institution fraud is punishable by up to 30 years in federal prison.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

 

Simon Curanaj, 67, Yonkers, New York, was sentenced today to 24 months in prison for his role in a $3.5 million scheme to use false information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning.”

According to documents filed in the case and statements made in court:

From 2012 through January 2014, Curanaj, Michael Arroyo, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on residential properties in New Jersey and New York, including a residential property on Havermeyer Avenue, Bronx, New York. In 2013, Curanaj, Arroyo, and others transferred ownership of the property to an individual living at the property and his family friend.

Curanaj, Arroyo, and others then applied, in the family friend’s name, for two HELOCs from two banks using the Havermeyer Avenue property as collateral. They hid from the lenders the fact that the property was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also falsely inflated the family friend’s income without his knowledge. In addition, the equity in the property was far less than the amount of the HELOC loans Curanaj, Arroyo, and others applied for.

The victim banks eventually issued loans to the family friend in excess of $500,000. After the victim banks deposited money into the family friend’s bank accounts, portions of the funds were disbursed to Curanaj, Arroyo, and others. Eventually, the family friend defaulted on the two HELOC loans. The overall scheme resulted in $2.2 million in losses to the victim banks.

In addition to the prison term, Judge Vazquez sentenced Curanaj to five years of supervised release and ordered him to pay $2.1 million in restitution. Arroyo was sentenced in September 2018 to 21 months in prison for his role in the scheme.

Curanaj previously pleaded guilty to an information charging him with conspiracy to commit bank fraud. Judge Vazquez imposed the sentence by videoconference today.

Acting U.S. Attorney Rachael A. Honig made the announcement.

Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak in Newark, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.

 

Steve Young Kang, aka “Steven Young Kang” and “Young Tae Kang,” 66, Ridgefield, New Jersey, was sentenced today to 18 months in prison for his role in a multi-year scheme to defraud financial institutions and others for a Short Sale Fraud Scheme.

According to documents filed in this case and statements made in court:

Kang and others fraudulently induced mortgage lenders to participate in “short sale” transactions, in which, typically, a financial institution agrees to allow a homeowner in financial distress to sell his or her home for less than the homeowner owes on the mortgage. Such transactions are called short sales because the market value of the house is less than the amount owed by the homeowner and the lender agrees to accept a payment “short” of the amount owed by the owner.

From June 2013 to January 2017, Kang, who owned and controlled two real estate brokerages, sold his own properties and recruited others to sell properties in fraudulent short sales to a co-schemer, Mehdi Kassai. The co-schemers convinced financial institutions to agree to short sales and to accept less than the properties were worth through false documents, straw buyers, and cosmetic damage to properties. Kang, as a listing broker, also prevented legitimate and higher offers from being made by artificially limiting the ability of others to bid on and buy properties. Kassai then sold the properties to third-parties at a substantial profit. Kang defrauded financial institutions and others of at least $2.7 million.

In addition to the prison term, Kang was sentenced to three years of supervised release and ordered him to forfeit $835,248 in proceeds of the scheme. Restitution will be determined at a later date.

Kang previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of bank fraud and one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.

Rahul Agarwal, Attorney for the United States in this matter, announced.

Attorney for the United States Agarwal credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, special agents of the U.S. Department of Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, with the investigation leading to today’s sentencing.

The government is represented by Special Assistant U.S. Attorneys Charlie L. Divine and Kevin V. Di Gregory of the Federal Housing Finance Agency, Office of Inspector General.