(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 an indictment charging TIMOTHY W. 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, with fraud, tax, money laundering and identity theft offenses stemming from a long-running fraud scheme that targeted distressed homeowners.

The 10-count indictment, which was returned on February 10, was unsealed today.  BURKE appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.

BURKE has been detained since November 19, 2015, when he was arrested on a criminal complaint.

According to the indictment, since at least April 2008 and continuing to at least November 19, 2015, BURKE engaged in a scheme 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 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...