New York Mortgage Fraud Scheme Nets 12 Indictments

Twelve individuals, including mortgage brokers, loan officers and attorneys, have been charged with engaging in a scheme to defraud various lending institutions by using fictitious identities and documents to obtain more than $9 million in residential mortgages. According to Preet Bharara, U.S. attorney for the Southern District of New York, the defendants and others purchased dozens of residential properties throughout New York City and Long Island with fraudulent mortgages. These mortgages, which amounted to 100% of the purchase price of the residences, were allegedly obtained using names of fictitious individuals or individuals whose identification information was misappropriated or misused. The defendants, who could not be reached for comment, are charged with providing lenders with false IDs, false employment, income and rental information and fraudulent bank statements. Most of the loans are now in default. The New York defendants charged include: Jeffrey Larochelle, a loan processor from Bay Shore; Eric Finger, an attorney from Mineola; Foriduzzaman Sarder (Jackson Heights); Sakat Hossain (Jackson Heights) and others. One defendant is a resident of Mississippi.