Brooklyn developer arrested for mortgage fraud

A Brooklyn developer accused of pocketing $15 million in mortgages on condos he sold to 40 Crown Heights families was arrested and held without bail yesterday. Eliyahu Ezagui stopped making payments on the buildings, located at 770 Lefferts Avenue and 613 East New York Avenue, and obtained the mortgages because he kept the apartments’ deeds instead of giving them to the buyers. Authorities say this is the biggest local case of subprime mortgage fraud on record.