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  • November 30, 1999

Archives For November 30, 1999

HUD Repurchase Avoidance Scam Alleged by US

Rachel Dollar —  September 29, 2015 — 1 Comment

The United States filed a civil suit against the Rainy Day Foundation, Inc., a purported charitable “counseling fund,” together with its associated business entities and principals.  The case was filed federal court in Central Islip, New York and has been assigned to United States District Judge Joseph F. Bianco.

The complaint alleges that in at least 865 instances, the Rainy Day Foundation, together with five Eastern District of New York-based mortgage lenders and their principals, defrauded the United States and various banks insured by the Federal Deposit Insurance Corporation (“FDIC”), resulting in millions of dollars of mortgage losses, and requiring the United States to pay over $5,605,237 in false claims. Continue Reading…

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Two Plead Guilty in Mortgage Modification Scheme

Rachel Dollar —  September 16, 2015 — 3 Comments

Ped Abghari, a/k/a “Ted Allen,” 38, Irvine, California, and Justin Romano, 41, of Blue Point, New York, pled guilty for their roles in orchestrating a massive mortgage modification scheme that collectively defrauded over 8,000 homeowners out of over $18.5 million.  Abghari and Romano each pled guilty to wire fraud and conspiracy to commit wire fraud, and Abghari also pled guilty to misprision of a felony.  Romano pled on September 14, 2015, and Abghari pled on September 15, 2015, before U.S. District Judge. John F. Keenan.   Continue Reading…

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Conviction in Massive Mortgage File Theft

Rachel Dollar —  September 2, 2015 — Leave a comment

Anika N. Greene, 42, Bronx, New York, was convicted by a federal jury on charges of conspiracy to commit bank and wire fraud, bank fraud, wire fraud, access device fraud and three counts of aggravated identity theft.

Green was charged in a superseding indicted on July 15, 2014. According to court records and evidence presented at trial, Greene and three other individuals, Jeffrey Washington, Alice Howard, and Catya J. Craig, burglarized Wells Fargo mortgage offices throughout New York, New Jersey, Connecticut and Maryland in 2012 and 2013. The defendants stole over 1,800 mortgage files that were then used in a variety of bank customer impersonation and retail credit fraud schemes, targeting various banks and retailers. Washington recruited individuals to go into banks, impersonate customers and remove funds via setting up business accounts and transferring funds from the accounts of bank customers. Washington and other defendants, including Greene, traveled from New York to the Eastern District of Virginia on multiple occasions throughout 2012 and 2013. Continue Reading…

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New York Businessman Pleads Guilty in Multi-Family Fraud

Rachel Dollar —  August 28, 2015 — Leave a comment

Selim Zherka, 47, businessman, Somers, New York, pled guilty to conspiring to make false statements to a bank in order to receive millions of dollars in loans and to file materially false tax returns with the IRS.  As part of his plea agreement, Zherka agreed to forfeit $5.23 million.

According to the Superseding Information filed in White Plains federal court and other court documents filed in the case:  From December 2005 through the present, Zherka conspired with others to obtain $63.5 million in loans from Sovereign Bank (now Santander), for the purchase and/or refinancing of apartment house complexes in Tennessee by lying about the purchase price of the real estate he was acquiring and the amount of the down payment he was making toward the purchase in question. Continue Reading…

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Judge Denies Habeas, Upholding Fraud Conviction

A former leader of a Haitian paramilitary force failed to persuade a judge that his mortgage fraud conviction in the United States was unsound.

Eastern District Judge Jack Weinstein denied Emmanuel “Toto” Constant’s habeas corpus petition on Friday, saying the lead-up to his conviction—which involved a state judge’s sua sponte decision to vacate Constant’s plea deal in light of serious allegations against him for his acts in Haiti—did not run afoul of due process requirements.

 Posted by Rachel Dollar  onAugust 19, 2015 In Mortgage Fraud on the web ,
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House-napping? The newest invasion?

Rachel Dollar —  August 10, 2015 — Leave a comment

Brandon Sestoso, 33, Hicksville, New York, his brother Chas Sestoso, 31, Hicksville, New York and Jesse Kusinow, 32, Howell, New  Jersey were charged with breaking into a residence in Jamaica Estates, New York in April, 2015, changing the locks and refusing to allow the true homeowners to enter the premises until they transferred the deed of the house to the defendants.

Queens District Attorney Richard A. Brown said, “In a truly bizarre case, the defendants are accused of breaking into a Queens residence and locking the true owners out, then forcing them to negotiate with the defendants if they wanted to gain access to their own home. If convicted, the defendants face lengthy  time behind bars.” Continue Reading…

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Court Holds Claims of Forged Deeds Not Subject to Time Limits (New York)

Although the CPLR sets forth an applicable statute of limitations period for virtually all causes of action, and otherwise provides for a catch-all limitations period under CPLR 213(1) for claims that are not specifically delineated, the Court of Appeals has recently held that one particular, and not altogether uncommon, cause of action is not subject to any limitations period. In a remarkable 4-3 holding in Faison v. Lewis, the majority of the Court of Appeals held that a claim alleging forgery of a deed is not subject to any statute of limitations defense.

 Posted by Rachel Dollar  onAugust 5, 2015 In Mortgage Fraud on the web ,
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Mortgage Modification Representative Pleads Guilty

Rachel Dollar —  July 30, 2015 — Leave a comment

Jonathan Lyons, 53, a former sales representative at a company purporting to provide mortgage modification services, Rockville Center, New York, pled guilty in Manhattan federal court for his role in a multimillion-dollar scheme that victimized more than 500 financially struggling homeowners across the country.  Lyons, who was arrested in October 2013, pled guilty before U.S. District Judge George B. Daniels.

According to the allegations contained in the Indictment and related Informations, the plea agreements, and statements made in court proceedings: Continue Reading…

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New York Man Sentenced in Million Dollar Mortgage Fraud Scheme

Rachel Dollar —  July 29, 2015 — Leave a comment

Michael St. Claire, 36, Skaneateles, New York was sentenced to six months in prison, an additional four months of home confinement, and ordered to pay $1,257,945 in restitution in connection with a mortgage fraud scheme which resulted in losses of more than $1 million to lenders. St. Claire previously pleaded guilty to conspiracy to commit wire fraud. Continue Reading…

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Real Estate Investment Firm Owners Arrested on Fraud Charges

Allison Tussey —  June 4, 2015 — Leave a comment

Carlton P. Cabot, 52, Stamford, Connecticut, and Timothy J. Kroll, 44, New Hope, Pennsylvania, – the former Chief Executive Officer and Chief Operating Officer of Cabot Investment Properties LLC, respectively – were arrested for allegedly participating in a scheme to defraud investors in numerous real estate investments by misappropriating over $17 million to pay for personal and business expenses and covering up their fraud with manipulated financial statements.

Continue Reading…

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