In a multi-million dollar fraud scam, a Brooklyn real estate entrepreneur was found guilty of manipulating the mortgage loan system and abusing programs intended to help distressed homeowners. Avraham Tarshish could spend up to 30 years in jail for his involvement in a scheme that deceived mortgage loan holders out of millions of dollars, according to the federal jury’s verdict, which was rendered Monday.
“The defendant defrauded taxpayer-funded mortgage loan holders out of millions of dollars and took advantage of programs designed to help distressed property owners in need,” stated United States Attorney Breon Peace in a statement issued by the U.S. Attorney’s Office. False liens and eliminating plumbing fixtures and toilets—a practice Tarshish’s team nicknamed “making the homes pretty”—were among the deceptive strategies used to make properties seem less desirable.
Between March 2013 and November 2018, Tarshish, who was connected to companies in Brooklyn and Queens, such as My Ideal Property Inc. and Exclusive Homes Realty Group, Inc., conspired to defraud mortgage lenders by tricking them into authorizing short sale transactions at sharply depressed prices.
The government particularly described eleven incidents in Brooklyn where lenders were defrauded of over $2.4 million, demonstrating that the conspiracy involved dozens of fraudulent short sale transactions over a number of years, as evidenced by the evidence produced at trial. “Today’s verdict demonstrates the resolve of the Federal Housing Finance Agency Office of Inspector General and its law enforcement partners to pursue those who defraud the government-sponsored enterprises,” said Robert Manchak, Special Agent-in-Charge of the FHFA-OIG’s Northeast Region, in the same release.
Both mortgage lenders and the housing market suffered greatly as a result of the strategy, which also reduced equitable housing access for locals and had an impact on real estate values. In addition to harming lenders, short sale mortgage fraud also depresses property prices and keeps local residents from obtaining affordable homes, U.S. Attorney Peace said.
Anyone with information about this type of mortgage fraud can report it online or by calling the Office of Inspector General Hotline at the Federal Housing Finance Agency. Peace, who currently serves as the chair of the Attorney General’s Advisory Committee’s White Collar Fraud subcommittee, highlights the office’s continued dedication to fighting financial crimes.
With Assistant United States Attorneys Shannon C. Jones, John Vagelatos, Joshua B. Dugan, and Russell Noble spearheading the prosecution, the Office’s Business and Securities Fraud Section demonstrated ongoing vigilance in the face of fraudulent activities endangering economic and community stability.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!
Leave a Reply