The Real Deal New York

Long Island law firm accused of intentionally overbilling Fannie Mae

The alleged scheme by Rosicki, Rosicki and Associates has been running since 2009, according to authorities.
March 31, 2018 03:37PM

(Credit: 401(K) 2012)

Authorities are accusing law firm Rosicki, Rosicki and Associates and its affiliates of falsely inflating their bills for services related to mortgage foreclosures on loans owned by Fannie Mae.

The firm is alleged to have overbilled Fannie Mae by up to 750 percent — millions of dollars — since May 2009, when authorities say the scheme began, according to Long Island Business News.

“As alleged in the complaint, for years the Rosicki law firm exploited its relationship with Fannie Mae, a government-sponsored entity, for its own financial gain by knowingly causing Fannie Mae to pay artificially inflated costs for foreclosure-related services,” Manhattan U.S. Attorney Geoffrey Berman said in a statement to the paper.

The complaint includes affiliated company Enterprise Process Service and title firm Paramount Land. The Rosicki firm, which bills itself as “the leading mortgage banking law firm in New York,” denies wrongdoing.

“The charges leveled against the firm are based on questionable legal theories, have no merit and will be vigorously challenged in court,” a firm spokesperson said.

One of the firm’s partners — Tom Rosicki, who founded the office with his wife, Cynthia — was a FBI agent for seven years in the 1980s focused on organized crime and, in 1989, then-New York mayor Ed Koch appointed him Deputy Commissioner of the New York City Taxi & Limousine Commission. [LIBN]Erin Hudson