(Source: USAO, NY) BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alagi Samba, 46, of Bronx, NY, pleaded guilty to conspiracy to commit wire fraud affecting a financial institution, before U.S. District Judge Laurence J. Vilardo. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine. Assistant U.S. Attorneys Kathleen A. Lynch and Elizabeth Moellering, who are handling the case, stated that…

(Source: nj.com) A former West New York commissioner will spend about a year on house arrest for collecting nearly $150,000 in rental income while being in default of a federal mortgage loan. Ruben Vargas pleaded guilty to equity skimming in May after obtaining a $417,449 loan through the Department of Housing and Urban Development to buy a two-family home at 5512 Grant Place. Vargas collected about $3,000 each month in rental income from the…

After superstorm Sandy ripped through New Jersey and destroyed tens of thousands of homes, the federal goverment sent $4.2 billion here for housing programs. The state hired a Louisiana company to help set up and run three key housing programs, but it was fired after less than nine months on the job. A federal government watchdog is now saying New Jersey should either prove the company it hired spent federal money appropriately or pay…

(USAO, CT) Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VESCERA, 60, of Dana Point, Calif., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for false advertising and misusing a government seal in connection with the provision of mortgage modification services. According to court…

(Source: USAO, TN) Memphis, TN – A real estate investor has been charged in a 14-count indictment that alleges he defrauded three banks and a mortgage lending business. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today. According to the indictment, Thomas L. Boyd, 43, of Memphis, Tennessee, owned a real estate agency, Wonderful Properties, LLC. Between April 2006 and September 2014, Boyd…

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: 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…

(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…