Archives For False Documents

Restaurant Owner Sentenced For Role in Submitting Fraudulent Loan Applications

Stephanie Abbott —  August 29, 2024 — Leave a comment

Omar Hernandez-Lopez, 39, Springfield, Illinois as sentenced today to 18 months’ imprisonment for concealment of a felony in connection with wire fraud and false statements on loan applications.

At Hernandez-Lopez’s sentencing hearing, Senior U.S. District Judge Sue E. Myerscough, found that starting around June 2018 and continuing until at least June 2019, Hernandez-Lopez was aware of and acted to conceal the fraudulent nature of several falsified documents that were submitted to loan providers. Two fraudulent loan packages were submitted in an unsuccessful attempt to obtain a business loan for Hernandez-Lopez’s Springfield restaurant, La Fiesta Grande. The other two fraudulent loan packages were submitted in a successful attempt to obtain a home mortgage loan. Hernandez-Lopez was aware of the submission of fraudulent documents and took steps to conceal their fraudulent nature from the loan companies and law enforcement.

At the sentencing hearing, the government presented evidence showing that Hernandez-Lopez’s name is on the deed of the house for the fraudulently obtained mortgage and he operated the restaurant.

The sentencing follows Hernandez-Lopez’s guilty plea in April 2024. The statutory penalties for misprision of a felony are up to three years’ imprisonment, one year of supervised release, and a fine of up to $250,000.

Following his prison sentence, he will serve a 12-month term of supervised release.

The charges were investigated by the Federal Deposit Insurance Corporation Office of Inspector General, Chicago Region. Assistant U.S. Attorneys Sierra Senor-Moore and Tanner Jacobs represented the government in the prosecution.

 

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Real Estate Investor Pleads Guilty to $54.7M Mortgage Fraud Conspiracy

Stephanie Abbott —  June 17, 2024 — Leave a comment

Aron Puretz, 53, New Jersey, pleaded guilty today to engaging in an extensive, multi-year conspiracy to fraudulently obtain over $54.7 million in loans and to fraudulently acquire multifamily and commercial properties.

According to court documents, between 2016 and 2022, Puretz conspired with others to deceive lenders into issuing multifamily and commercial mortgage loans. Puretz and his conspirators provided the lenders with fictitious documents, including purchase contracts with inflated purchase prices, fake financial statements, and other fraudulent documents. Puretz was an employee of Apex Equity Group, a real estate investment and advisory firm, and one of the owners of Maple Lawn in Eureka, Illinois, and Big Country Chateau in Little Rock, Arkansas, both multifamily properties, and Troy Technology Park in Troy, Michigan, a commercial property.

In February 2017, Maple Lawn was acquired for $4.1 million. However, Puretz and his conspirators from Apex Equity Group utilized the identity of a conspirator to present a lender and Freddie Mac with a purchase and sale contract for $5.8 million and other fraudulent documents. On Feb. 17, 2017, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $4.1 million sales price and another for the fraudulent $5.8 million sales price presented to the lender. Part of the conspiracy was to create a nonprofit entity, JPC Charities, for the purpose of receiving tax-exempt status for the properties owned by Puretz and co-conspirators. Puretz and his conspirators provided false statements to the city of Eureka, Illinois, to receive a property tax exception.

In July 2019, Puretz and his conspirators acquired Big Country Chateau. However, Puretz knew the lender and Freddie Mac would not approve him as an owner, and used the identity of an associate instead of his own. Puretz hid his ownership and involvement with the property management company from the Department of Housing and Urban Development and other federal and state agencies.

In September 2020, Troy Technology Park was acquired for $42.7 million. However, Puretz and his co-conspirators presented the lender with a fraudulent purchase and sale contract for $70 million. To support the inflated purchase price, Puretz and his conspirators submitted to the lender and appraiser a fraudulent letter of intent to purchase the property from another party for $68 million and other fraudulent documents. To conceal the fraudulent nature of the transaction, Puretz and his conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the loan. On Sept. 25, 2020, a title and settlement company based in Lakewood, New Jersey, performed two closings, one for the true $42.7 million sales price and another for the fraudulent $70 million sales price presented to the lender.

Puretz pleaded guilty to one count of conspiracy to commit wire fraud affecting a financial institution. He is scheduled to be sentenced on Oct. 30, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Philip R. Sellinger for the District of New Jersey; Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Inspector General Brian M. Tomney of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.

FHFA-OIG and USPIS are investigating the case.

Assistant U.S. Attorney Martha Nye for the District of New Jersey and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.

 

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Third Mortgage Professional Pleads Guilty to Mortgage Fraud Scheme

Stephanie Abbott —  May 20, 2024 — Leave a comment

German Antonio Lopez-Velasquez, 55, Modesto, California, pleaded guilty today to conspiring to commit bank fraud.

According to court documents, German Antonio Lopez-Velasquez, a real estate agent, worked with Lisa Santos, 48, Long Beach, California, a mortgage loan officer, and Marko Antonio Lopez, 27, Modesto, California, a real estate agent and notary public, to obtain fraudulent mortgage loans for properties based in Stanislaus, San Joaquin, and Santa Clara Counties in California, and elsewhere. The three defendants used false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans.

Santos pleaded guilty on May 13, 2024, to conspiring to commit bank fraud, and is scheduled to be sentenced on Sept. 30, 2024. Marko Antonio Lopez previously pleaded guilty and was sentenced on April 1, 2024.

Lopez-Velasquez is scheduled to be sentenced on Sept. 9, 2024, by U.S. District Judge Jennifer L. Thurston. Lopez-Velasquez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. 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.

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

“The integrity of the FHA loan program is essential to helping hard working citizens realize the American dream of homeownership,” said Special Agent-in-Charge Mark Kaminsky with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to jeopardize this program and the health and stability of our nation’s housing market.”

This case is the product of an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG) and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.

 

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Two Former Employees of Mortgage Lending Business Charged for Roles in Mortgage Fraud Scheme

Stephanie Abbott —  April 24, 2024 — Leave a comment

Christopher J. Gallo, 44, Old Tappan, New Jersey, and Mehmet A. Elmas, 32, a U.S. citizen who resides in Turkey, are charged by complaint with one count of conspiracy to commit bank fraud, in connection with their roles in a large-scale mortgage fraud scheme.

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

Gallo and Elmas were previously employed by a New Jersey-based, privately owned licensed residential mortgage lending business. Gallo was employed as a senior loan officer and Elmas was a mortgage loan officer and Gallo’s assistant. From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans. Gallo and Elmas routinely mislead mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates. Gallo and Elmas often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain proprieties when, in fact, those properties were intended to be used as rental or investment properties.

By fraudulently misleading lenders about the true intended use of the properties, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates.  The conspiracy also included falsifying property records, including building safety and financial information of prospective borrowers to facilitate mortgage loan approval. Between 2018 through October 2023, Gallo originated more than $1.4 billion in loans.

They appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were each released $200,000 unsecured bond.

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

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy 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 arrests.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

 

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Salesman Sent to Prison for Fraud Conspiracy Costing HUD

Stephanie Abbott —  November 28, 2023 — Leave a comment

Edmundo De La Torre, 38, Texas was sentenced for his role in a complex mortgage fraud scheme.

From 2018 to 2020, De La Torre admitted he was working as a salesman for a Laredo area homebuilder. De La Torre used his position to attempt to get potential customers approved for Department of Housing and Urban Development (HUD)-backed mortgages. He forged various documents, including financial statements, bank statements, paycheck stubs and letters of reference for at least 38 otherwise unqualified homebuyers.

De La Torre then submitted these fake and forged documents to a Laredo area bank on behalf of the potential homebuyers. He admitted he was receiving a commission for each sale and personally profiting over $200,000 from the scheme. In addition, more than three dozen known loans in this scheme ultimately defaulted or had to be restructured, costing HUD roughly $971,310.10 at the time of his plea in April.

De La Torre pleaded guilty April 19 to orchestrating a mortgage fraud scheme in which he altered hundreds of documents to get otherwise unqualified buyers’ approval for government-backed mortgages.

U.S. District Judge Marina Marmalejo has now ordered De La Torre to serve 36 months in federal prison to be immediately followed by three years of supervised release. De La Torre was also ordered to pay restitution in the amount of $1.17 million. In handing down the sentence, Judge Marmolejo noted the sophistication and persistence of De La Torre’s crime and remarked on the profound effects it has on potential first-time and low-income homebuyers seeking homes, and instead ending up entangled in legal and finances issues.

De La Torre was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

U.S. Attorney Alamdar S. Hamdani made the announcement.

HUD – Office of Inspector General conducted the investigation with assistance from the FBI. Assistant U.S. Attorney Thomas Carter prosecuted the case.

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MAN SENTENCED FOR STEALING WIDOW’S HOME BY POSING AS HER SON

Stephanie Abbott —  November 22, 2023 — Leave a comment

Christopher Williams, 43, Brooklyn, New York was sentenced for stealing the home of an elderly widow by posing as her son, then selling the property and cashing in more than $200,000.

According to the charges:

  • In August 2021, Barbara Matthews received a notification that a new deed, mortgage and other documents had been filed without her knowledge with the New York City Department of Finance for a property she inherited after her father’s death in 2011. The home, on Dunlop Avenue in Jamaica, had been empty for several years as Matthews planned to renovate it.
  • An investigation was opened and revealed that Williams had submitted several documents to falsely represent himself as the sole owner of the property. The documents included phony birth certificates and death certificates identifying Matthews as her mother.
  • After claiming ownership of the property, Williams sold it for $270,000.
  • After closing, the defendant received a sale proceeds check for $214,535.64. Williams took the check to a Bronx check cashing establishment and received $209,665.69 in cash.

Williams pleaded guilty in August to identity theft in the first degree and offering a false instrument for filing in the second degree.

Williams was sentenced yesterday by Queens Supreme Court Justice Leigh K. Cheng to a term of two to four years in prison. Justice Cheng also granted a motion filed by the Queens District Attorney’s office, which applied a state statue to argue for immediately restoring the stolen property’s deed to its rightful owner, sparing the victim the time and expense of additional legal proceedings in civil court. District Attorney Katz’s office was the first to ever use the 2019 law earlier this year, successfully returning a St. Albans home to a disabled veteran and his family.

Queens District Attorney Melinda Katz made the announcement.

District Attorney Katz said: “We will not allow criminals to scheme and scam their way into other people’s properties and we will use every tool available to ensure that victims are made whole. In communities targeted by deed fraudsters, many people do not have the means to hire an attorney to file a civil suit and litigate against deep-pocketed mortgage companies, banks and title insurers. Our use of this new tactic allows us to provide victims with one-stop justice.”

Assistant District Attorney Myongjae M. Yi, Section Chief of the District Attorney’s Major Economic Crimes Bureau, prosecuted the case under the supervision of Assistant District Attorneys Rachel Stein, Chief of the Real Estate Theft Unit in the Housing and Worker Protection Bureau, William Jorgenson, Bureau Chief, and Christina Hanophy, Deputy Bureau Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Gerard A. Brave.

 

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Women Sentenced For Fraudulent Gift Letters In Support of Mortgage Loan Applications

Stephanie Abbott —  July 12, 2023 — Leave a comment

Lee Ann Benninghoff, 45, Aliquippa, Pennsylvania, has been sentenced in federal court to one (1) day of imprisonment and three (3) years of supervised release on her conviction of bank fraud and conspiracy.

According to information presented to the court, Benninghoff owned and operated Complete Escrow and Bella Casa Realty. From February 2014 through March 2017, Benninghoff used her position and connections in real estate financing, and conspired with others in the industry, to submit fraudulent gift letters in support of mortgage loan applications. The gift letters misrepresented the source of the funds and their purported purpose.

United States Attorney Eric G. Olshan made the announcement today.

Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.

United States Attorney Olshan commended the Federal Housing Finance Agency Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the U.S. Secret Service for the investigation leading to the successful prosecution of Benninghoff.

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Mortgage Loan Officer Convicted for Creating and Executing Mortgage Fraud Scheme

Stephanie Abbott —  April 12, 2023 — Leave a comment

Omayra Ujaque ,52, St. Cloud, Florida, has been found guilty of three counts of bank fraud and one count of aggravated identity theft.

According to evidence presented at trial, Ujaque, in her capacity as a licensed mortgage loan officer, created and executed a mortgage fraud scheme targeting the financial institution where she worked. To ensure that otherwise unqualified borrowers were approved for mortgage loans, Ujaque falsified the borrowers’ income by fabricating or inflating the amounts of their monthly child support payments on mortgage loan applications that she signed and certified to the financial institution’s underwriting department. In furtherance of her scheme, Ujaque created fictitious Final Judgments of Dissolution of Marriage and Final Orders Modifying Child Support that fraudulently represented that the borrowers were entitled to receive non-existent monthly child support payments. Ujaque then used the names of judges from the Circuit Court of the Ninth District of Florida and forged their signatures on the fabricated Final Judgments of Dissolution of Marriage or Final Orders Modifying Child Support.

Ujaque also created bogus Florida Department of Revenue Statements listing fraudulent monthly child support payments, as well as phony prepaid debit card statements listing fake borrower withdrawals of the non-existent monthly child support payments. In most cases, the borrowers did not, in fact, have the listed children and/or had never been married. Ujaque submitted bogus paperwork to the financial institution to support the false monthly income on the loan applications. Based on Ujaque’s misrepresentations, the financial institution approved and funded the mortgage loans.

Ujaque faces a maximum penalty of 30 years’ imprisonment for each bank fraud count and a mandatory 2-year sentence for the aggravated identity theft county. Her sentencing hearing is scheduled for July 5, 2023. Ujaque had been indicted on February 15, 2023.

This case was investigated by Federal Housing Finance Agency – Office of Inspector General, the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Florida Office of Financial Regulation. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

 

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Realty Company Owner Pleads Guilty for Fraudulent Gift Letters

Stephanie Abbott —  March 16, 2023 — Leave a comment

Lee Ann Benninghoff,  44, Aliquippa, Pennsylvania, pleaded guilty in federal court to charges of bank fraud and conspiracy.

In connection with the guilty plea, the court was advised that Benninghoff owned and operated Complete Escrow and Bella Casa Realty. From February 2014 through March 2017, Benninghoff used her position and connections in real estate financing, and conspired with others in the industry, to submit fraudulent gift letters in support of mortgage loan applications The gift letters misrepresented the source of the funds and their purported purpose.

Benninghoff, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.

Judge Horan scheduled sentencing for July 12, 2023, at 9 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Acting United States Attorney Troy Rivetti made the announcement.

Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.

The Federal Housing Finance Agency Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the U.S. Secret Service conducted the investigation that led to the prosecution of Benninghoff.

 

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Real Estate Investor Admits Multi-Year Mortgage Fraud Scheme

Stephanie Abbott —  December 5, 2022 — Leave a comment

Anthony Garvin, 52, Jersey City, New Jersey, a real estate investor has admitted conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses.

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

Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.

Garvin pleaded guilty by videoconference on Dec. 2, 2022, before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of conspiracy to commit bank fraud and four counts of bank fraud.

The count of bank fraud conspiracy and each count of bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others, whichever is greatest. Sentencing is scheduled for April 11, 2023.

Two conspirators previously pleaded guilty and are awaiting sentencing.

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

U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.

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