Missouri Couple Admit to Mortgage Scheme

Joseph Silvestro and his wife Julie Silvestro pleaded guilty before U.S. District Judge Ortrie D. Smith to their roles in a mortgage fraud scheme. According to Matt J. Whitworth, acting U.S. attorney for the Western District of Missouri, the Silvestros defrauded mortgage lenders by obtaining larger loans from lenders than the actual sale price associated with a particular property. These loans were based on material false and fraudulent representations, and by concealing material facts. The Silvestros arranged for mortgage documents that often included payment of fictitious and fraudulent invoices to their company, Taylor Investments, as part of the settlement statement. The plea agreements cite three properties — two in Kansas City, Mo., and one in Kansas City, Kans. — in which the Silvestros fraudulently claimed invoices for Taylor Investments, ranging from $20,000 to $37,000. The government believes that the loss attributed to the Silvestros totaled more than $567,000, though the defendants have reserved the right to contest the amount of loss at their sentencing hearings, which will be scheduled after the United States Probation Office completes its pre-sentence investigation. Under federal statutes, the Silvestros are each subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.