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  • November 30, 1999

Archives For November 30, 1999

R.E. Agent Sentenced For Running Multi-Year Mortgage Fraud Scheme

Stephanie Abbott —  January 21, 2022 — Leave a comment

Eric Hill, 52, Tyrone, Georgia, an Atlanta real estate agent, has been sentenced for his participation in a mortgage fraud scheme that netted more than $21 million in fraudulent mortgage loans.  Many of the fraudulent loans were insured by the Federal Housing Administration (FHA), resulting in over $850,000 in claims being paid for mortgages that have defaulted.  Hill also engaged in a scheme to defraud his employer, a national real estate developer, out of over $480,000 dollars in real estate commissions.

According to the charges and other information presented in court: The defendants participated in a scheme in which homebuyers and real estate agents submitted fraudulent loan applications to induce mortgage lenders to fund mortgages.  Eric Hill and Robert Kelske were real estate agents who represented a major nationwide homebuilder.  Hill and Kelske helped more than 100 homebuyers who were looking to buy a home, but who were unqualified to obtain a mortgage, commit fraud.  The agents instructed the homebuyers as to what type of assets they needed to claim to have in the bank, and what type of employment and income they needed to submit in their mortgage applications.

Hill and Kelske then coordinated with multiple document fabricators, including defendants Fawziyyah Connor and Stephanie Hogan, who altered the homebuyers’ bank statements to inflate their assets and to create bank entries reflecting false direct deposits from an employer selected by the real estate agent.  The document fabricators also generated fake earnings statements that matched the direct deposit entries to make it appear that the homebuyer was employed, and earning income, from a fake employer.  Other participants in the scheme then acted as employment verifiers and responded to phone calls or emails from lenders to falsely verify the homebuyers’ employment.  Defendants Jerod Little, Renee Little, Maurice Lawson, Todd Taylor, Paige McDaniel and Donald Fontenot acted as employment verifiers.  Hill and Kelske coordinated the creation and submission of the false information so that the lies to the lenders were consistent.

In another aspect of the scheme, Hill and Kelske conspired with real estate agents Anthony Richard and Cephus Chapman, who falsely claimed to represent homebuyers as their selling agents in order to receive commissions from the home sales.  In reality, these real estate agents had never even met the homebuyers they claimed to represent.  To avoid detection, the agents often notified closing attorneys that they would not be available for the home closing and sent wire instructions for the receipt of their commissions.  When these purported selling agents received their unearned commissions, they kicked back the majority of the commissions to Hill or Kelske for enabling them to be added to the deal, keeping a small share for their role in the scheme.

“Eric Hill and his co-conspirators defrauded mortgage loan holders out of millions of dollars, with taxpayers being saddled with much of the loss,” said U.S. Attorney Kurt R. Erskine.  “We will vigorously prosecute those who commit mortgage fraud and enrich themselves at the expense of financial institutions and government programs that insure or guarantee the loans.”

“While it is easy to dismiss financial fraud cases as victimless crimes because of their lack of violence, there is, however, very real victimization to our economy and our taxpayers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing sends the message that the FBI will persistently work to protect American citizens and the real estate market from predators who drag down our economy by deception for their own personal gain.”

“Eric Hill engaged in premeditated criminal acts with the sole purpose of enriching himself, without regard for millions of American homebuyers who rely on federal housing programs to insure their mortgages. His fraudulent actions strike not only at the fiscal integrity of the FHA, but also our neighbors and communities who are victims of these schemes,” said Special Agent in Charge Wyatt Achord with the Department of Housing and Urban Development Office of Inspector General.

“The Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG) is committed to holding accountable those who commit fraud in the housing and mortgage market and abuse the resources of the Government-Sponsored Enterprises regulated by FHFA.  We are proud to have partnered with HUD-OIG, the FBI, and the U.S. Attorney’s Office for the Northern District of Georgia in this case,” said Edwin S. Bonano, Special Agent-in-Charge, FHFA-OIG, Southeast Region.

Hill was sentenced to two years, six months in prison to be followed by three years of supervised release.  Hill was convicted on these charges on September 21, 2020, after he pleaded guilty.

In addition to Hill, Defendants Donald Fontenot, Maurice Lawson, Stephanie Hogan, Jerod Little, Renee Little, Paige McDaniel, Fawziyyah Connor, and Anthony Richard have all been sentenced for their roles in the conspiracies.

  • Todd Taylor pled guilty and is scheduled to be sentenced on March 3, 2022.
  • Robert Kelske also pled guilty and is scheduled to be sentenced April 14, 2022.
  • Cephus Chapman was convicted at trial and is scheduled to be sentenced on February 10, 2022.

This case was investigated by the Department of Housing and Urban Development Office of the Inspector General, Federal Bureau of Investigation, and Federal Housing Finance Agency Office of Inspector General.

Assistant U.S. Attorneys David A. O’Neal, Alison B. Prout, and former Northern District of Georgia Assistant U.S. Attorney Ryan Huschka prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

 

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State’s Attorney Facing Perjury & False Mortgage Application Charges

Stephanie Abbott —  January 13, 2022 — Leave a comment

Marilyn J. Mosby, 41, Baltimore, Maryland, was indicted today on federal charges of perjury and making false mortgage applications, relating to the purchases of two vacation homes in Florida.

According to the four-count indictment, on May 26, 2020 and December 29, 2020, Mosby submitted “457(b) Coronavirus-Related Distribution Requests” for one-time withdrawals of $40,000 and $50,000, respectively, from City of Baltimore’s Deferred Compensation Plans.  In each request, the indictment alleges that Mosby falsely certified that she met at least one of the qualifications for a distribution as defined under the CARES Act, specifically, that she experienced adverse financial consequences from the Coronavirus as a result of being quarantined, furloughed, or laid off; having reduced work hours; being unable to work due to lack of childcare; or the closing or reduction of hours of a business she owned or operated.  In signing the forms, Mosby “affirm[ed] under penalties for perjury the statements and acknowledgments made in this request.”  The indictment alleges that Mosby did not experience any such financial hardships and in fact, Mosby received her full gross salary of $247,955.58 from January 1, 2020 through December 29, 2020, in bi-weekly gross pay direct deposits of $9,183.54.

Further, the indictment alleges that on July 28, 2020 and September 2, 2020, as well as on January 14, 2021 and February 19, 2021, Mosby made false statements in applications for a $490,500 mortgage to purchase a home in Kissimmee, Florida and for a $428,400 mortgage to purchase a condominium in Long Boat Key, Florida.  As part of both applications, Mosby was required to disclose her liabilities.  Mosby did not disclose on either application that she had unpaid federal taxes from a number of previous years and that on March 3, 2020, the Internal Revenue Service (IRS) had placed a lien against all property and rights to property belonging to Mosby and her husband in the amount of $45,022, the amount of unpaid taxes Mosby and her husband owed the IRS as of that date.  In each application, Mosby also responded “no” in response to the question, “Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee,” even though she was delinquent in paying federal taxes to the IRS.

Finally, according to the indictment, one week prior to closing on the Kissimmee vacation home, on or about August 25, 2020, Mosby executed an agreement with a vacation home management company giving the management company control over the rental of the property she ultimately purchased in Kissimmee.  On September 2, 2020, Mosby signed a “second home rider” which provided, among other things, that the borrower occupy and use the property as their second home; that the borrower maintain exclusive control over the ownership of the property, including short-term rentals, and not subject the property to any…agreement that requires the borrower either to rent the property or give a management firm or any other person or entity any control over the occupancy or use of the property; and that the borrower keep the property available primarily as a residence for their personal use and enjoyment for at least one year, unless the lender otherwise agrees in writing.  The indictment alleges that by falsely executing the “second home rider” Mosby could obtain a lower interest rate on the mortgage for the property than she would have received without it.

If convicted, Mosby faces a maximum sentence of five years in federal prison for each of two counts of perjury and a maximum of 30 years in federal prison for each of two counts of making false mortgage applications.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

The defendant will have an initial appearance in U.S. District Court in Baltimore, but the hearing has not yet been scheduled.

The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office.

United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Leo J. Wise, Sean R. Delaney, and Aaron S.J. Zelinsky, who are prosecuting the federal case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Man Sentenced for Quit Claim Deed Forgery

Stephanie Abbott —  January 13, 2022 — Leave a comment

Arondo Harris, Missouri, has been sentenced to a term of 41 months in federal prison for the filing of counterfeit quit claim deeds with the City of St. Louis Recorder of Deeds Office.

According to court documents, between January 9, 2019 and February 6, 2019, Harris presented to the City of St. Louis Recorder of Deeds Office three quit claim deeds that contained the forged signatures of the properties’ true owners. Each of the forged signatures had had been falsely authenticated through the seal and forged signature of a licensed notary public.  The property owners of one of the residences had died prior to the forgery of their signatures.

As a result of the false notarization of the quit claim deeds, representatives of the Recorders Office accepted the deeds as legitimate and falsely recorded Harris as the owner of three residences located in the City of St. Louis.

The Court determined that Harris’ conduct resulted in losses of more than $150,000 to the legitimate owners of the properties. It also determined that Harris caused substantial financial hardship to one of the victims because that individual was left homeless by the fraudulent activities.

This case was investigated by the United States Postal Inspection Service and was prosecuted based upon a referral by the Circuit Attorney’s Office for the City of St. Louis.

 

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Man Indicted for Alleged Title Theft

Stephanie Abbott —  January 4, 2022 — Leave a comment

James Effiwatt, 64, Brooklyn, New York has been arraigned on an indictment in which he is charged with grand larceny and burglary for allegedly filing a fake deed to transfer ownership of his landlord’s $759,000 rental property to a trust in the defendant’s name.

According to the investigation, on January 15, 2021, Effiwatt allegedly recorded a deed to a three-story house at 36 Hubbard Place, Brooklyn, New York that transferred the title of the property from the owner, Hubbard Estates LLC, to an entity called the “Ayonkladd Trust,” of which the defendant was the trustee. The deed was allegedly signed by Effiwatt as a grantor despite the fact that the defendant is not a member or trustee of Hubbard Estates LLC. The building has an assessed value of $759,000. The property has been owned by the legitimate owner, a 49-year-old woman, since 2015.

The investigation revealed that Effiwatt is a former tenant of 36 Hubbard Place who lived in the third-floor attic apartment for several years beginning in August 2015. Effiwatt allegedly stopped paying rent in the summer of 2017 and was eventually ordered to vacate the property in October 2019 by city housing officials over housing code violations. However, it is alleged that Effiwatt subsequently moved back into the attic apartment where he has remained since. Additionally, beginning in March 2021, Effiwatt allegedly approached several other tenants of the property and demanded they pay him rent. Effiwatt also allegedly approached a real estate broker and discussed selling the property for six or seven hundred thousand dollars.

Brooklyn District Attorney Eric Gonzalez today made the announcement.

District Attorney Gonzalez said, “This defendant allegedly filed a fake deed in an unlawful attempt to take ownership of his landlord’s property. Title theft is a serious crime that deprives hard-working people of the single most important asset any American can hope to own. As real estate values continue to rise dramatically in Brooklyn, I remain committed to protecting homeowners across the borough from fraudsters who would steal their security and investment in the future.”

The defendant was arraigned today before Brooklyn Supreme Court Justice Danny Chun on an indictment in which he is charged with one count of second-degree burglary, one count of second-degree grand larceny and two counts of fourth-degree attempted grand larceny. The defendant was ordered held on bail of $25,000 bond or $10,000 cash and to return to court on February 15, 2022.

The case is being prosecuted by Assistant District Attorney Francis Longobardi, Special Counsel to the District Attorney’s Real Estate Frauds Unit, under the supervision of Assistant District Attorney Richard Farrell, Unit Chief, Assistant District Attorney Gregory Pavlides, Chief of the Frauds Bureau, Assistant District Attorney Michel Spanakos, Deputy Chief of the Investigations Division and the overall supervision of Assistant District Attorney Patricia McNeill, Chief of the Investigations Division.

 

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Attorney & Settlement Agent Admits Role in Reverse Mortgage Fraud Scheme

Stephanie Abbott —  December 17, 2021 — Leave a comment

Martin D. Eagan, 50, Montville, New Jersey, today admitted his role in a reverse mortgage fraud scheme that exploited several elderly homeowners.

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

Eagan, principal of the Martin D. Eagan Law Firm, was an attorney licensed by the state of New Jersey with a practice in Morristown, New Jersey, that primarily focused on real estate transactions, such as loan originations, reverse mortgages and the refinancing of residential homes.

From 2007 through 2010, Eagan, acting as a settlement agent, was required to comply with instructions established by financial institutions that provided loan funds to borrowers. As part of the lending process, Eagan was required to generate and certify HUD-1 settlement statements that Eagan submitted to lenders. The HUD-1 settlement statement itemized the receipt and disbursement of all funds for each real estate closing. HUD-1 settlement statements were required to be approved by a lender before a settlement agent could disburse funds. The disbursement of funds had to mirror the representations made on the lender-approved HUD-1.

Eagan and his conspirators submitted fraudulent documentation to lenders to persuade lenders to approve and fund reverse mortgages and the refinancing of existing mortgages. Fraudulent documentation submitted included false HUD-1s that concealed from the lenders the fact that disbursements of loan proceeds went to conspirators, or entities the conspirators owned or controlled, and false appraisals that overstated the value of homes.

Eagan, his conspirators, and others controlled the loan application process from the time the homeowners applied for loans to the disbursement of loan funds, and ultimately through the diversion of loan proceeds to conspirators.

Eagan pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud.

The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for April 14, 2022.

U.S. Attorney Philip R. Sellinger made the announcement.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s guilty plea.

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

 

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Real Estate Broker Pleads Guilty to Real Estate Deposit Scam

Stephanie Abbott —  December 17, 2021 — Leave a comment

Michael P. Flavin, 38, Quincy, Massachusetts, a real estate broker pleaded guilty today to operating a scheme in which he falsely marketed properties that were not for sale, or had already been sold, and then stole the buyers’ real estate deposits.

Between 2017 and April 2020, Flavin solicited deposits on real estate transactions by marketing numerous real estate properties that were not actually for sale. In each case, Flavin executed purchase and sale agreements and received deposit checks from or on behalf of the potential buyers, even though the actual owners of the properties had not agreed to sell their properties or to sell them to those buyers. Flavin forged the signatures of the sellers on the purported purchase and sale agreements. Over this period of approximately three years, Flavin cashed more than 60 deposit checks totaling approximately $1.8 million.

The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of aggravated identity theft each provide for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Flavin pleaded guilty to two counts of wire fraud and two counts of aggravated identity theft. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 12, 2022.

Acting United States Attorney Nathaniel Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Victor A. Wild and Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

 

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Man Indicted for Scheme to Steal & Re-Sell Real Property

Stephanie Abbott —  December 15, 2021 — Leave a comment

Franklin A. Olaitan, 48, Beltsville, Maryland, has been charged in a 10-count indictment with carrying out a scheme to steal a residence located in the District of Columbia and then reselling the property to an unsuspecting buyer.

As alleged in the indictment, Olaitan perpetrated a scheme in which he obtained a residential real property located in the 2000 block of First Street NW, District of Columbia by submitting false documents to lenders, a settlement company, and the District of Columbia Recorder of Deeds. It is alleged that Olaitan quickly resold the residential property to an unsuspecting buyer and received the seller’s proceeds from both purported sales of the property.  In the real estate closings, first, a lender paid approximately $420,000 and, second, a purchaser paid about $550,000.

Olaitan is charged with four counts of wire fraud, two counts of interstate transportation of stolen property, two counts of aggravated identity theft, one count of identity theft, and one count of first-degree fraud. The indictment includes a notification of the United States’ intent to seek the forfeiture of any proceeds Olaitan received as a result of the fraud scheme, identity theft, and interstate transportation of stolen property.

Olaitan was arraigned today in the U.S. District Court for the District of Columbia. The indictment against him was also unsealed today.  He was released following his initial court appearance, pending further court proceedings.

The indictment was announced by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.

An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

This case is being investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Diane Lucas of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Daniel Haines and Mariela Andrade.

 

 

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Loan Officer Admits Participation in Large-Scale Mortgage Fraud Scheme

Stephanie Abbott —  December 13, 2021 — Leave a comment

Isaac DePaula, 41, a loan officer for a mortgage company today admitted his role in a long-running, large-scale mortgage fraud scheme,

According to the documents filed in this and other cases and statements made in court:

From September 2006 to September 2010, DePaula and his conspirators engaged in a long-running, large-scale mortgage fraud conspiracy through a mortgage company called Premier Mortgage Services (PMS). The conspirators targeted properties in low-income areas of New Jersey. After recruiting straw buyers, the defendants used a variety of fraudulent documents to make it appear as though the straw buyers possessed far more assets, and earned far more income, than they actually did. The defendants then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties.

The defendants then split the proceeds from the mortgages among themselves and others by using fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The defendants made false representations and provided fraudulent documents when, in fact, the straw buyers had no means of paying the mortgages on the subject properties, many of which entered into foreclosure proceedings.

The defendants played different roles in the scheme, and others charged and convicted included a part owner of PMS, an attorney who aided the fraud by performing closings on many of the subject properties, an accountant who created false documents, the owner of a real estate development company, several loan officers, and a paralegal for another attorney who also closed fraudulent transactions.

DePaula was a loan officer at PMS and recruited straw buyers, provided false and fraudulent documents to the straw buyers, and incorporated false and fraudulent documents into loan applications to induce financial institutions to fund mortgage loans. The loan officers profited illegally by receiving a commission from PMS for each mortgage loan that they closed, and also profited illegally by diverting portions of the fraudulently obtained mortgage proceeds for themselves, often via shell corporations or nominee bank accounts.

DePaula was a long-time fugitive who was charged by criminal complaint in 2012 and by indictment in 2016. He returned to the United States in March 2020 to face the charges in the indictment.

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

The offense to which DePaula pleaded guilty carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for April 19, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of the Federal Housing Finance Agency – Office of the Inspector General, under the direction of Special Agent in Charge Robert W. Manchak, with the investigation leading to today’s guilty plea.

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Woman Charged With Scheme To Steal The Home Of An Elderly Veteran

Stephanie Abbott —  December 10, 2021 — Leave a comment

Jasmine Morgan, 32, Queens, New York has been charged today with grand larceny, identity theft and other crimes. The defendant allegedly posed as the granddaughter of an elderly veteran to fraudulently transfer a property deed into her name and then collected more than $134,000 when she sold the home in March 2020.

According to the charges, around February 6, 2020, the defendant claimed to be the granddaughter of a deceased Queens, New York homeowner and offered to facilitate the sale of his home on 198th Street in St. Albans, Queens, New York. Morgan and an unapprehended other – who posed as the homeowner – agreed to a sale price of $300,000 with a buyer and subsequently entered into a contract. Morgan allegedly accepted a $5,000 down payment and provided identification and a death certificate for the dead grandfather and an uncle.

On March 6, 2020, the defendant again purported herself to be the heir to the deceased homeowner’s estate when she appeared at a law firm in Queens for the closing with an unapprehended other, who again posed as the homeowner. The deed transfer for the property was confirmed by the lawyer, who gave the defendant a check for just over $134,000.

According to the complaint, the true owner of the home is a 74-year-old veteran who discovered the ruse when he was sued by the person who “bought” the home from Morgan. The victim did not transfer his deed and does not have a granddaughter.

The defendant allegedly cashed the check she received from the lawyer at a Brooklyn check cashing establishment and received cash.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said, “This defendant was ultimately caught in a tangled web of her own making – a paper trail of bogus transactions that revealed a complicated con to steal a man’s home. By posing as a grieving granddaughter, the defendant allegedly duped multiple people into believing she was entitled to a $134,000 payday from the sale of a house to which she had no rightful claim. The victim is a 74-year-old veteran who was left with a mess to unravel.”

Morgan was arraigned on Tuesday before Queens Criminal Court Judge Karen Gopee on a 15-count criminal complaint. The defendant is charged with grand larceny in the second degree, criminal possession of a forged instrument in the second degree, identity theft in the first degree, falsifying business records in the first degree, scheme to defraud in the first degree and offering a false instrument for filing in the second degree. Judge Gopee ordered the defendant to return to Court on January31, 2022. If convicted, Morgan faces up to 15 years in prison.

The investigation was conducted by Detective Marcelo Razzo of the NYPD Special Frauds Squad and Assistant District Attorney Christina Hanophy, Deputy Bureau Chief of the Housing and Worker Protection Bureau of the Queens District Attorney’s Office who is also prosecuting the case under the supervision of Assistant District Attorney William Jorgenson, Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

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Duo Indicted on Federal Charges in Real Estate Scheme

Stephanie Abbott —  November 29, 2021 — Leave a comment

Jeffrey M. Young-Bey, 65, Washington, District of Columbia, and Martina Yolanda Jones, 44, Baltimore, Maryland, were indicted earlier this month for a scheme in which they allegedly used fraudulent property deeds to steal residential real estate property in the District of Columbia

As alleged in the indictment, beginning at least as early as November 2019, Young-Bey and Jones conspired to steal real estate and obtain a loan against the property or sell the property for profit. Specifically, the indictment states, Young-Bey identified a target property located in the District of Columbia. Young-Bey then prepared a fraudulent property deed, including forged signatures of the true owners.  Young-Bey filed the deed with the District of Columbia Recorder of Deeds, transferring the title from the true owners to a corporate entity controlled by Young-Bey or Jones.  The residential real estate property was then encumbered or sold through means of materially false and fraudulent pretenses, representations, and promises.

As a result of the scheme, the indictment alleges, Jones and Young-Bey obtained $323,224 from a fraudulent loan taken out on one property.

In addition, according to the indictment, Young-Bey received $268,036 from the sale of a second property in the District of Columbia that he allegedly stole and sold through the same scheme.  With these fraudulent proceeds, the indictment alleges, Young-Bey purchased a 2020 BMW 750XI worth over $106,000 and a 2016 BMW 328XI worth over $21,000.

All told, the indictment alleges, the scheme generated more than $500,000 in illegal proceeds.

In connection with Young-Bey’s activity, the Government has seized $269,239, as well as the 2020 BMW 750XI.

The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.

Young-Bey was arrested on November 22, 2021, and Jones was arrested on November 27, 2021. Both have made their initial appearances in the U.S. District Court for the District of Columbia.

Young-Bey was arrested on Nov. 22, 2021, and Jones was arrested on Nov. 27, 2021. Both have made their initial appearances in the U.S. District Court for the District of Columbia.

An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.

This case is being investigated by the FBI’s Washington Field Office.  It is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein and Special Assistant U.S. Attorney Viviana Vasiu, both from the Fraud Section of the U.S. Attorney’s Office for the District of Columbia.

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