Famed mobster allegedly uses mortgage firm for $12M scheme

TRD NEW YORK /
Nov.November 02, 2011 08:47 AM

alternate
text
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. The mob ring had targeted the firm during the real estate boom because it was earning millions from subprime mortgage loans and was looking to restructure, federal prosecutors in New Jersey said.

The group began threatening the firm’s executives and families to get them to vote and support the $12 million scheme. The mobsters manipulated mergers of sham companies, orchestrated buyouts of fake companies and relied on phony consulting contracts to launder the money. According to the FirstPlus website, the firm has filed for Chapter 11 bankruptcy protection in an effort to reorganize. [Post]


Related Articles

arrow_forward_ios
From left: 1578 Union Street in Brooklyn, Daniel Melamed (inset) and Eric Schneiderman (Credit: Google Maps, Getty Images, Facebook)

Overzealous investigators went too far in pursuit of Brooklyn landlord, appellate court rules

Paul Manafort and Manhattan District Attorney Cyrus Vance Jr. (Credit: Getty Images)

Judge tosses mortgage-fraud case against Manafort

Florida man sentenced in $3.5M mortgage fraud scheme that targeted Orthodox Jewish community

Florida man sentenced in $3.5M mortgage fraud scheme that targeted Orthodox Jewish community

Penny Bradley (Credit: Getty Images)

Upper East Side developer funded “lavish lifestyle” through mortgage fraud: Manhattan district attorney

Morgan Management's Robert C. Morgan and the Avon Commons apartment complex in Avon, N.Y. (Credit: Rochester Institute of Technology)

Lenders poised to take over apartment empire amid massive mortgage fraud probe

How a New York mortgage broker scammed large banks and Fannie and Freddie

How a New York mortgage broker scammed large banks and Fannie and Freddie

DA Vance indicts Manafort on pardon-proof mortgage fraud charges

DA Vance indicts Manafort on pardon-proof mortgage fraud charges

Fraud alert: Bogus mortgage applications are on the rise

Fraud alert: Bogus mortgage applications are on the rise

arrow_forward_ios
Loading...