Queens-based broker indicted in $50M mortgage fraud scheme

August 19, 2011 05:54PM

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.

“Mortgage loans allow millions of Americans to turn the dream of homeownership into reality,” Loretta Lynch, U.S. Attorney for the Eastern District of New York, said in a statement. “The system must be based on the accuracy of its information and the integrity of its members. The defendant allegedly brought neither to the table, abusing the trust of the financial institutions who relied upon him.”

An agent at Ahmad Realty declined to comment until more information became public. — Adam Fusfeld