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HomeNational MortgageConviction in 10-year lengthy mortgage fraud scheme

Conviction in 10-year lengthy mortgage fraud scheme

A 50-year-old Salem, Massachusetts man who orchestrated a 10-year mortgage fraud scheme involving fraudulent mortgage transactions totaling $6.5 million and greater than $3.8 million in losses to lenders was convicted by a federal jury in Boston, the U.S. Lawyer’s Workplace introduced.

George Kritopoulos was convicted on Friday, Could 27, of 1 rely of conspiracy, two counts of wire fraud, six counts of financial institution fraud, one rely of aiding the preparation of a false earnings tax return and one rely of obstruction of justice, officers stated.

Kritopoulos was charged in September 2018 together with co-defendants Joseph Bates III and David Plunkett.

From 2006 by means of 2015, Kritopoulos, Bates and others engaged in a scheme to defraud banks and different monetary establishments by submitting false info on behalf of individuals that they had recruited to buy properties.

“The properties have been usually multi-family buildings with two-to-four models, which the co-conspirators then transformed into condominiums,” the U.S. Lawyer’s Workplace stated. “Kritopoulos recruited new debtors to buy the person condominium models, which have been additionally financed by mortgage loans obtained by fraud, in keeping with prosecutors.”

The false info submitted to lenders included the debtors’ employment, earnings, belongings and intent to occupy the property, nevertheless, implied that the debtors have been employed by entities that have been what prosecutors name shell corporations owned by Kritopoulos, which have been used to advance the scheme, officers stated.

The employment info additionally included false claims in regards to the earnings that the debtors obtained from the entities because the debtors obtained little or no earnings from the shell corporations. The false info additionally fraudulently claimed that the debtors meant to dwell within the properties that they have been buying, prosecutors stated.

Kritopoulos introduced the debtors to Plunkett, who prosecutors stated ready tax returns that contained false and inflated earnings.

Of the 21 properties, all however two debtors defaulted on their mortgage funds, leading to foreclosures and losses to the lenders of greater than $3.8 million, officers stated.

Prosecutors stated Kritopoulos tried to intrude with the federal felony investigation into the mortgage fraud scheme by encouraging Bates and Plunkett to make false statements and create false paperwork to make the shell corporations seem professional.

“Mr. Kritopoulos held himself out to be a outstanding actual property developer and believed he was above the legislation. This responsible verdict makes it clear that he’s not,” stated United States Lawyer Rachael S. Rollins. “Mr. Kritopoulos and his co-conspirators thought they might line their pockets by victimizing harmless lenders and debtors. When the scheme started unraveling, Mr. Kritopoulos tried to have his co-conspirators create phony paperwork, however they refused. In an interview, Mr. Kritopoulos lied to investigators. We’re dedicated to holding those that have interaction in any such habits accountable.”

In October 2018, Bates pleaded responsible to 1 rely of conspiracy, three counts of wire fraud affecting a monetary establishment, and two counts of financial institution fraud. A sentencing listening to for Bates has not but been scheduled. In February 2019, Plunkett pleaded responsible to 1 rely of financial institution fraud and one rely of aiding within the submission of false tax returns. He scheduled to be sentenced on Sept. 15, 2022.

U.S. District Courtroom Decide Patti B. Saris scheduled sentencing for Kritopoulos for Sept. 29, 2022.

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