Deutsche Bank agreed to pay a $202.3 million penalty to settle the government’s civil lawsuit accusing it of mortgage fraud, U.S Attorney Preet Bharara announced today. The suit was filed last week. The bank admitted to government allegations that its MortgageIT unit defrauded the Federal Housing Administration and the Department of Housing and Urban Development for more than a decade. [more]

Thomas Prusik-Parkin impersonating his dead mother

A Brooklyn man was convicted today of impersonating his dead mother in order to collect her social security checks and remain in her $2.2 million Park Slope home, the New York Post reported (see video after the jump). [more]

Queens DA Richard Brown

A real estate investor and an attorney were charged with running a mortgage fraud scheme in Queens and could face up to 15 years in prison, according to a news release from the office of Queens District Attorney Richard Brown.

Jose Toral, a Long Island real estate investor, and Thomas Zacharia, a Staten Island attorney, allegedly conspired in a complicated scheme to steal more than $65,000 from a Queens Village couple in financial distress. [more]

A real estate attorney who was charged with second-degree grand larceny, residential mortgage fraud and possession of a forged instrument for allegedly using several Brooklyn homes he did not own to secure a $225,000 mortgage in 2010, has now been accused of stealing a $75,000 down payment from a Staten Island woman who was selling her house. [more]

A Manhattan jury found New York City and Westchester County attorney Louis Cherico guilty of bank fraud and money laundering for his part in a fraudulent scheme involving Westchester real estate, LoHud.com reported.

Cherico conspired with four others, all of whom were already sentenced to between 12 and 51 months in prison for their parts in the scheme, to obtain mortgage loans on the purchase of several multi-million dollar Westchester homes in 2002.

The group submitted false documents to obtain mortgage loans that sometimes exceeded the purchase price of the properties. [more]

Marlon Brando in “The Godfather”Rather than target a restaurant or gambling ring, a famed mob family used an unconventional cover to steal $12 million: a mortgage company.

The New York Post reported that federal prosecutors allege the son of former Lucchese boss Nicodemo “Little Nicky” Scarfo, Nicodermo “Junior” Scarfo, and 12 others extorted Texas-based FirstPlus Financial Group to gain control of the company, and ultimately steal millions during the real estate boom. [more]

Six people were charged today with running a nine-year mortgage fraud scheme that took $25 million from financial institutions and mortgage lenders, Reuters reported. They will be arraigned in Brooklyn federal court later today.

The group allegedly obtained millions in mortgage loans by submitting false documents on behalf of homebuyers they recruited, making them appear more creditworthy than they actually were. According to prosecutors, the defendants then lied about how much money was distributed at the property closings, most of which were in Queens. [more]

Ozone Park, Queens-based broker Edul Ahmad was indicted in a $50 million mortgage fraud scheme, the U.S. Attorney’s office announced today.

Ahmad, who is a licensed real estate broker with Ahmad Realty, also allegedly acted as a loan officer and submitted false loan applications to make mortgage borrowers appear more creditworthy than they actually were.

As a result, Ahmad profited from real estate commissions and loan fees, according to the indictment. Further, Ahmad allegedly misrepresented whether the borrowers actually made any payments to the sellers and the amount of commission and fee money he collected, which according to the U.S. Attorney’s office totaled more than the law permits. – Adam Fusfeld [more]

Manhattan U.S. Attorney Preet Bharara has announced charges against 14 defendants in a $58 million mortgage fraud scheme involving Long Island-based mortgage broker First Class Equities.

Bharara’s office filed a five-count indictment against Gerard Canino, the owner and president of First Class, five of the company’s loan officers, four attorneys with links to the company and one disbarred lawyer, all for their part in a mortgage fraud scheme involving 100 home mortgage loans.

“This brazen and wide-ranging scheme defrauded banks and lenders of millions and enriched its participants, including real estate professionals who took advantage of their inside knowledge of the system to fleece it,” Bharara said. -– Katherine Clarke [more]

Nationwide mortgage servicer GMAC, which was the beneficiary of a taxpayer bailout in 2008, submitted false documentation to foreclose on homeowners for whom it lacked original lending paperwork, according to information obtained by ProPublica. In one case, GMAC wanted to foreclose on a New York City homeowner, but couldn’t sign documents in the name of the original lender as is customary because the company, Ameriquest, had gone out of business. So GMAC allegedly filed a document dated July 2010, three years after Ameriquest folded, that said it had been assigned the loan in 2005. It was signed by a GMAC executive claiming to be a “Limited Signing Officer” for Ameriquest, the paperwork says. [more]