Florida Attorney Pleads Guilty to $82.8 Million Mortgage Fraud Scheme

John A. Yanchek of Sarasota, Florida, has pleaded guilty to three counts of a 47-count indictment charging him and three other individuals with conspiracy, making false statements in connection with bank loans, scheming to defraud several FDIC-insured banks and money laundering. According to the plea agreement, Yanchek entered into a conspiracy to make false statements to federally insured banks in connection with applications for commercial loans to fund the purchase of vacant land in the Sarasota/Manatee, Fla., area for development. The object of the conspiracy was to obtain a loan from a bank in an amount that was sufficient to allow the conspirators to purchase the property without contributing any equity of their own and to receive excess loan proceeds for their personal use and benefit. To influence the lending decision of the various banks, Yanchek, acting in his legal capacity as the closing attorney, made false statements regarding the financial resources of the borrower, the amount and source of equity contributed by the borrower, compliance with the seller's obligation to provide marketable title to the property and distribution of the loan proceeds. The total face amount of the commercial loans fraudulently obtained from seven banks was $82.7 million. Yanchek was one of four individuals indicted in connection with this scheme, including Neil Mohamed Husani, Larry P. Nardelli and Michael A. Tringali. According to the U.S. attorney's office, co-defendant Tringali pleaded guilty to the conspiracy charge on Nov. 3, 2008, and awaits sentencing. Mr. Nardelli is on trial this week. Mr. Husani has been arrested in Jordan.