Guyanese immigrants face financial ruin in wake of mortgage fraud scheme

New York /
Jan.January 09, 2012 11:00 AM

Scores of Guyanese immigrants in Richmond Hill, Queens are in financial straits as a result of a $50 million mortgage fraud scheme perpetrated by Guyanese broker and real estate magnate Edul Ahmad, the New York Times reported.

Ahmad, who was arrested by Federal Bureau of Investigation agents in July, is charged with conning buyers into taking out subprime mortgages, inflating the values of their properties and hiding his involvement by using straw buyers, the Times said. He profited from real estate commissions and loan fees, according to the indictment, and misrepresented whether the borrowers actually made any payments to the sellers and the amount of commission money he collected.

Ahmad pleaded not guilty in 2011, but the aftermath of his scheme allegedly continues.

A married couple who took a 12.5 percent loan Ahmad arranged in 2006 lost their home, the souvenir store they operated and their entire life savings. They said their lives are still in turmoil and their children are supporting them financially.

“When you purchase a property, you think, ‘This is it!” the husband said. Instead, he said, he felt overwhelmed by “depression and anger issues, and hopelessness.” [NYT]

 

Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Andrew Florance, CEO of CoStar Group (CoStar, Homes.com)
CoStar to buy Homes.com for $156M
CoStar to buy Homes.com for $156M
The 300 West 125th Street location of Buffalo Wild Wings is closing for good. (Google Maps, Getty)
Buffalo Wild Wings chickens out on Harlem lease
Buffalo Wild Wings chickens out on Harlem lease
The Goodtime Hotel with Pharrell Williams and (from top) David Grutman, Michael D. Fascitelli and Eric Birnbaum (Getty, Alice Gao)
Pharrell’s Goodtime Hotel opens in Miami Beach
Pharrell’s Goodtime Hotel opens in Miami Beach
General Assembly's CEO Lisa Lewin (General Assembly)
General Assembly renews 40K sf lease in Flatiron District
General Assembly renews 40K sf lease in Flatiron District
Robert Durst appearing in Los Angeles County Superior Court (Getty)
Robert Durst murder trial to restart following Covid delay
Robert Durst murder trial to restart following Covid delay
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...