Regions Bank (Regions) has agreed to pay $52.4 million to the United States 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 Department of Justice announced today.  Regions is headquartered in Birmingham, Alabama.…

(Source: USAO, CT) Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHDI MOAREFIAN, also known as “Michael Miller,” 37, of Irvine, California, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for participating in an extensive mortgage loan modification scheme.  MOAREFIAN also was ordered to pay…

(Source: Capital Gazette) A federal audit has found that due to poor record-keeping and improper spending, the Housing Authority of the City of Annapolis didn't always appropriately spend more than $400,000 in grants designed to help its residents improve their lives. The Office of Inspector General for the U.S. Department of Housing and Urban Development found the housing authority did not maintain documents to support the expenses of $401,859…

(Source: USAO CT) Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two California residents involved in an extensive mortgage loan modification scheme were sentenced today in Bridgeport federal court.  U.S. District Judge Stefan R. Underhill sentenced SERJ GEUTSSOYAN, also known as “Anthony Kirk,” 34, of Santa Ana, to 52 months of imprisonment, and DANIEL SHIAU, also known as “Scott Decker,” 30, of…

(Source: USAO, VBA) ALEXANDRIA, Va. – Five California men have been sentenced for their roles in a nationwide home loan modification scam that victimized over 400 homeowners and families, resulting in a total loss of over $3.8 million. Roscoe Umali, 38, of Santa Ana, California, was sentenced on August 18 to 220 months in prison for leading the multi-state conspiracy.  Umali was also ordered to forfeit $3.8 million and to make…

(Source: USAO, TN) Wendy Askins, 55, of Red Boiling Springs, Tenn., pleaded guilty today before U.S. District Judge Aleta A. Trauger, to two counts of theft from a federally-funded entity, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. At the time of the offenses, Askins was the Executive Director for the Upper Cumberland Development District (UCDD), and also oversaw the daily operations of the Cumberland Regional…

(Source: News Channel 5) COOKEVILLE, Tenn. - A former deputy director at the Upper Cumberland Development District in Cookeville pleaded guilty Monday afternoon to a single count of federal bank fraud. As part of a plea deal with prosecutors, Larry Webb agreed to testify against longtime UCDD executive director Wendy Askins. Webb, who had faced a potential 220 years in federal prison and $6.75 million in fines, avoided any prison sentence under…

(USAO, District of Maine) Portland, Maine: United States Attorney Thomas E. Delahanty II announced thatTimothy P. Gallagher, 47, of Jay, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to a year and a day in prison and three years of supervised release for federal program fraud. He was also ordered to pay $79,639 in restitution. He pled guilty on April 14, 2016. According to court records, between May and November 2014…

(Source: Portland Press Herald) Timothy P. Gallagher, 47, of Jay was sentenced to prison Tuesday on a federal fraud charge by Judge Jon D. Levy in U.S. District Court in Portland. Gallagher pleaded guilty in April to defrauding a company that received funding from programs administered by the U.S. Department of Housing and Urban Development and the U.S. Department of Agriculture. He was sentenced to one year and a day in prison and three years…

(Source: theadvertiser.com) Resources available from FEMA are not sufficient to ‘make you whole' again, Gov. John Bel Edwards said Thursday after speaking with Youngsville residents whose homes recently flooded. Edwards, Youngsville Mayor Ken Ritter and other local and state officials toured two Lafayette Parish neighborhoods hit hard by the devastating rain that flooded hundreds of homes starting Aug. 12. Nearly 12 inches of rain fell in three…

(Source: theadvocate.com) Louisiana’s congressional delegation is working on legislation for additional funding to supplement recovery efforts from the historic flooding. U.S. Sen. David Vitter said Thursday he and the other members of the delegation are gathering the facts and figures – number of homes and businesses lost, for instance – that would support a request for billions of extra dollars beyond the federal disaster assistance available…

(USAO, MA) BOSTON – A real estate developer and a former City of Worcester housing official were charged in U.S. District Court in Worcester this week in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester. James E. Levin, 57, of Natick, a real estate developer and attorney, and Jacklyn M. Sutcivni, 43, of Dracut, a former employee of the City of Worcester’s Housing Development…

(OAJ, NJ) TRENTON –Attorney General Christopher S. Porrino announced that nine additional individuals have been charged criminally 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 71 people for allegedly engaging in this type of fraud, including the nine individuals charged today. The Attorney General’s Office is…

BOSTON – The president and founder of a former Falmouth mortgage company has been charged with defrauding the Government National Mortgage Association out of nearly $3 million. Robert Pena, 67, was charged Thursday in U.S. District Court in Boston. Pena, the president and founder of the now-defunct mortgage company, Mortgage Security, Inc. (MSI), was indicted on conspiracy and wire fraud charges. He was arrested today and will appear in before…

(Source: USAO, MA) BOSTON – The president and founder of a Falmouth mortgage company was charged in U.S. District Court in Boston in connection with defrauding the Government National Mortgage Association (Ginnie Mae) out of nearly $3 million. Robert Pena, 67, the president and founder of the now-defunct mortgage company, Mortgage Security, Inc. (MSI), was indicted on conspiracy and wire fraud charges.  Pena was arrested today and will…

(Source: USAO, PA) SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sherman Hills Realty LLC and Park Management LLC (collectively referred to as “Sherman Hills Realty”), have agreed to pay $125,000 to resolve allegations that Sherman Hills Realty violated the False Claims Act. The United States alleges that Sherman Hills Realty failed to provide qualifying tenants with utility…

(Source: wreg.com) MEMPHIS, Tenn. -- Employees were back to work Thursday at the Cordova headquarters for Global Ministries Foundation, but a day after federal raids, it's hard to say if it was business as usual. Despite employees being present, nobody at GMF's offices would speak on camera. Richard Hamlet was no where to be found. When WREG went by his Cordova home, we heard dogs barking in the background, but no one answered the door. It all…

(Source: USAO MA) BOSTON – A former maintenance technician for Roxse Homes, a subsidized housing development in Boston, was sentenced today in U.S. District Court in Boston for his role in a scheme to rent apartments at the housing development to individuals who were not qualified, in exchange for cash bribes. Ismael Morales, 36, of Jamaica Plain, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison and two…

(USAO, MA) BOSTON – Edward J. Tutunjian, who has owned and operated Boston Cab for more than four decades, was charged today in U.S. District Court with payroll tax evasion, employing illegal aliens and with failing to pay overtime wages. Tutunjian’s company, EJT Management, Inc., through which he operated Boston Cab, also was charged with defrauding the U.S. Department of Housing and Urban Development (HUD) by enabling EJT employees to obtain…

(boston.com) The owner of Boston Cab was charged with tax evasion and fraud offenses Tuesday in federal court, the U.S. Attorney’s office said in a statement. Edward J. Tutunjian, 66, of Belmont, who has owned and run Boston Cab since around 1972, was charged in U.S. District Court with payroll tax evasion, employing undocumented workers, and failing to pay overtime wages. EJT Management Inc., through which Tutunjian operated Boston Cab, was…