Authorities filed indictments in a $10 million mortgage fraud case involving two allegedly bogus sales in the Bronx and numerous additional transactions in suburban New York, law enforcement officials said.
The charges against the group of 13 New York state residents accused of participating in a fraudulent lending operation run from Islip, NY-based mortgage brokerage firm Bridgewater Funding were unsealed today, the United States Attorney in Manhattan said.
The 15-count indictment said the scheme included filing false documents to obtain fraudulent mortgages in February 2006 totaling $940,000 at 436 Swinton Avenue and 1055 Morris Avenue in the Bronx in order to purchase the properties.
The other alleged fraudulent activities occurred outside of New York City between 2005 and 2007, prosecutors said.
All the defendants were charged with conspiracy to commit bank fraud and wire fraud, which carries a penalty of up to 30 years in prison and fines of at least $1 million. Additionally, some were accused of bank fraud, which carries a maximum penalty of 30 years in prison, and wire fraud, which could result in a sentence of up to 20 years behind bars.