(Source: USAO, CT) Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned a superseding indictment charging BRADFORD BARNEYS, 50, of Odenton, Maryland, with conspiring with TIMOTHY W. BURKE in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut. BARNEYS is an attorney licensed to practice in Connecticut and has an office in Bridgeport.
The 12-count superseding indictment, which was returned on March 30, 2016, was unsealed today.
BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 64, of Easton, was originally charged by indictment on February 10, 2016, with mail fraud, wire fraud, tax evasion, money laundering and identity theft offenses. The superseding indictment charges him with additional mail fraud and money laundering counts.
According to the indictment, since at least April 2011 and continuing to at least September 2014, BURKE and BARNEYS conspired to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE and BARNEYS presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property. BARNEYS, acting as BURKE’s attorney, met or spoke with homeowners to reassure them about their sale to BURKE.
The indictment further alleges that BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. When tenants failed to pay rent, BARNEYS would evict them so that BURKE could obtain another tenant for the property...