Mortgage Fraud Probe into Multifamily Real Estate Lending

Mortgage Fraud Probe into Multifamily Real Estate Lending

According to the Wall Street Journal, the federal government is pursuing “one of the biggest mortgage-fraud probes since the financial crisis.” Reportedly, the FBI, DOJ, and the Office of the Inspector General for the Federal Housing Finance Agency are investigating alleged fraud schemes in multifamily real estate lending.

Four people have already been indicted in a multi-million dollar mortgage fraud scheme for allegedly conspiring to falsify loan information in order to obtain more than $167 million in multifamily loans.

The indictment alleges that between March 2011 and June 2017, Frank Giacobbe, Patrick Ogiony, Kevin Morgan, and Todd Morgan conspired to defraud government sponsored enterprises Fannie Mae and Freddie Mac, and defraud financial institutions, Arbor Commercial Mortgage and┬áBerkadia Commercial Mortgage, by faking much of the information required by the lenders. Allegedly the “defendants conspired to engage in a variety of conduct to induce mortgage lenders to issue loans for residential apartment complexes (1) for greater amounts than they would have issued had they known the truth; and (2) that the lenders would not have issued at the time of issuance had they known the truth.”

Among other things, the defendants are accused of:

  • Conspiring to provide lending institutions with false rent rolls suggesting that properties had more occupied units, at higher rental rates, and generated more income than they did.
  • Conspiring to provide false information about other income received at the complexes.
  • Conspiring to provide lenders with fraudulently altered leases.
  • Conspiring to prevent inspectors touring the properties from discovering vacant units by, among other things, turning on radios inside vacant units, placing mats and shoes outside apartment doors, and hiring someone to stage an apartment as lived in and pretend to be a tenant of an inspected unit.

These allegations against defendants Giacobbe, Ogiony, Morgan, and Morgan are just the beginning of a much larger mortgage fraud investigation into multifamily real estate lending, according to the Wall Street Journal report.

Alleged Mortgage Fraud is Aggressively Investigated and Prosecuted

If you are being investigated or have been arrested for mortgage fraud, it is essential that you retain an experienced mortgage fraud attorney as soon as possible. Investigations are lengthy and complex and each step of the process should be handled by a knowledgeable white collar criminal defense attorney. Even if you have not been arrested, but fear that you may be the subject of an investigation, contact Attorney Ashley D. Adams for a confidential consultation.

Ashley D. Adams has significant experience defending clients accused of complex white collar crimes, including mortgage fraud. She will work diligently to ensure that your rights are protected.

Contact us or call now (480) 219-1366 for a case evaluation. Have your questions answered and obtain the peace of mind that comes from having a former Assistant U.S. Attorney on your side.

 

The attorneys at Ashley D. Adams, PLC handle state criminal cases throughout Arizona including the cities of Phoenix, Scottsdale, Glendale, Mesa, Tempe, Ahwatukee, Maricopa, Gilbert, Peoria, Surprise, Goodyear, Litchfield Park, Avondale, Chandler, Casa Grande, Florence, Queen Creek, Deer Valley, North Pinal and Sun City as well as those living in and around Maricopa County, Pinal County, Pima County, Yuma County and Yavapai County.

The attorneys at Ashley D. Adams, PLC handle federal criminal cases throughout the United States, including Arizona, Oklahoma, Utah, and California.