(Source: LA Times) Two executives at a Los Angeles-based real estate development company and two of their employees have been indicted on charges they defrauded government agencies of millions of dollars in funds for housing low-income families. The 67-page federal grand jury indictment says Salim Karimi and three others at Advanced Development and Investment Inc. engaged in a conspiracy to fraudulently obtain more than $50 million in loan…

The former executive director of the Newark Watershed Conservation and Development Corp. (NWCDC) today admitted accepting approximately $999,000 in kickback payments in exchange for her assistance in awarding work to various vendors and contractors of the agency, U.S. Attorney Paul J. Fishman announced. Linda Watkins Brashear, 56, of West Orange, pleaded guilty before U.S. District Judge José Linares in Newark federal court to Counts 1 and 5 of…

(Source: FBI.gov) NEWARK N.J.—An Elizabeth, New Jersey, man today admitted recruiting straw buyers and submitting bogus loan applications as part of large-scale mortgage fraud scheme involving properties in northern New Jersey, U.S. Attorney Paul J. Fishman announced. Miguel LaRosa, 48, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court of an information charging him with one count of conspiracy to commit wire…

(Source: Justice.gov) Franklin American Mortgage Company has agreed to pay the United States $70 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today.  Franklin American is…

(Source: Realtytoday.com) Real estate attorney, Hyacinth Bellerose, pleaded guilty in participating in a wide-ranged scheme to defraud banks and mortgage companies. The scheme was done as part of a conspiracy involving sham "short" sales of numerous residential properties in the Merrimack Valley of Massachusetts. Bellerose was convicted with one count of conspiracy to commit bank fraud. According to the press release of the U.S. Attorney's…

(Source: Providence Journal Newspaper) PROVIDENCE, R.I. - Federal prosecutors say a former Providence City Council candidate has pleaded guilty to conspiracy to commit bank fraud for obtaining a $157,000 federally insured mortgage loan fraudulently by using the identity of a dead person. Authorities say 34-year-old Franchesco Franco, of Providence, a former mortgage loan originator, made false statements on a mortgage loan application and…

Suit Alleges that Purported Charity Concealed Problem Lenders from Federal Housing Administration (Source: USAO, Eastern District of New York) Kelly T. Currie, Acting United States Attorney for the Eastern District of New York, David A. Montoya, Inspector General for the Department of Housing and Urban Development, and Frederick W. Gibson, Acting Inspector General for the Federal Deposit Insurance Corporation, announced the filing of a civil…

(Source: DOJ) WASHINGTON – The owner of a Florida mortgage company was sentenced today to serve 135 months in prison for orchestrating a $64 million mortgage fraud scheme. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge Nadine Gurley of the U.S. Department of Housing and Urban Development’s (HUD OIG)…

TRENTON – Acting Attorney General John J. Hoffman announced that five additional individuals were charged criminally today with filing fraudulent applications for federal relief funds related to Superstorm Sandy. Since March 2014, the Attorney General’s Office has filed criminal charges against 37 people for allegedly engaging in this type of fraud, including the five individuals charged today. The Attorney General’s Office is continuing its…

Also Admits Role in Fraudulent $20,000 Home Rehabilitation Loan Scheme (Source: USAO, NJ) NEWARK, N.J. – A Hudson County, New Jersey, man today admitted using excessive force during an arrest, falsifying records in an attempt to conceal his conduct and helping a relative fraudulently obtain a home rehabilitation loan, U.S. Attorney Paul J. Fishman announced. Domenico Lillo, 45, of Bayonne, New Jersey, pleaded guilty before U.S. District Judge…

(Source: USAO, DC) WASHINGTON – Nine individuals have been sentenced on federal charges stemming from a mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland. The sentences were announced today by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special Agent in Charge of the Mid-Atlantic Region, Office of the Inspector…

WASHINGTON – Edward Dacy, 77, most recently of West Melbourne, Fla., was sentenced today to six years in prison on charges stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland. The sentencing was announced by Acting U.S. Attorney Vincent H. Cohen, Jr.; Olga Acevedo, Special…

(Source: Miami Herald) The Miami-based Carlisle Development Group, once the state’s biggest developer of affordable housing, had a reputation for building some of South Florida’s finest low-income apartments — including a tower in the historic black neighborhood of Overtown with after-school care and computer labs. What no one knew was that its once-lauded leaders, principals Matthew Greer and Lloyd Boggio, stole tens of millions of dollars in…

NEWARK N.J. – A Nutley, New Jersey, man was sentenced today to 24 months in prison for his role in a massive mortgage fraud scheme involving multiple properties in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced. Kenneth Sweetman, 34, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring to commit wire fraud affecting a financial institution. Judge…

CHICAGO—A west suburban real estate broker was sentenced today to 16 months in federal prison for his role in a mortgage fraud scheme involving a pair of Chicago apartment buildings. GEORGE DRAVILAS, 37, of Medinah, pleaded guilty in February to one count of bank fraud. In addition to the prison term, United States District Judge Gary Feinerman ordered Dravilas to pay $463,110 in restitution. Judge Feinerman ordered Dravilas to begin serving…

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MALGORZATA KARAS-GOLKA, also known as “Margaret,” 46, of Newington, was sentenced by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by five years of supervised release, for her role in an extensive mortgage fraud conspiracy.  She was also ordered to pay $166,500 in restitution. According to court documents and…

St. Louis, MO – John York was sentenced to 21 months in federal prison on charges of conspiracy to defraud the United States through his business, The Mortgage Store, Inc., in 2008. According to court documents, York was a part owner of The Mortgage Store, Inc. (TMS) and the president of Title America. By 2008, TMS was a major mortgage brokering business with offices in four states and hundreds of employees. The main offices were in Westport…

WASHINGTON – Edward Dacy, 76, most recently of West Melbourne, Fla., has been found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland. The verdict, returned March 25, 2015, was announced by Acting U.S. Attorney Vincent…

Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland,  today to 57 months in prison, followed by five years of supervised release, for conspiracy to commit wire fraud and aggravated identity theft, arising from a residential mortgage fraud scheme.  Judge Hazel also ordered Tibakweitira…

NEWARK, NJ—An inspector at the Union City Community Development Agency (UCCDA) today admitted conspiring with contractors to rig the selection process for home improvement, sidewalk replacement and other projects, causing losses of at least $400,000, U.S. Attorney Paul J. Fishman announced. Johnny Garces, 52, of Union City, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging…