In the following press release Queens District Attorney Richard A. Brown announced that nine individuals – including a high-level court employee – have been indicted in connection with a $1.4 million mortgage fraud scheme in which stolen identities were allegedly used to buy and sell properties – including a Queens house owned by a 74-year-old widow.

District Attorney Brown said, “This complicated and devious scheme allegedly involved defendants who were so greedy that they bought and sold three properties – totaling more than $1.4 million in fraudulent transactions – in just over eight days. Their alleged actions left a Jamaica woman – whose house was owned free and clear – facing foreclosure and a New Jersey woman – whose identity was stolen – fighting off banks seeking payment of mortgages fraudulently taken out in her name.”

The defendants (who are herein after identified) are expected to be arraigned today before Queens Supreme Court Justice Michael Aloise. They are variously charged with first- and second degree grand larceny, second-degree criminal possession of stolen property, first-degree identity theft, second-degree criminal possession of a forged instrument, first- and second-degree falsifying business records, first-degree offering a false instrument for filing, fourth- and fifth-degree conspiracy, first- and second-degree scheme to defraud, and fourth-degree money laundering. If convicted, the defendants face prison terms ranging from four years to 25 years.

District Attorney Brown said that the investigation began last November when Dorothy Thomas, 74, came to the District Attorney’s Elder Fraud Unit to report that her home had been sold two months earlier without her knowledge and that she was now facing foreclosure. She learned of the sale after receiving mail in the name of “Tolessi Enyonam” regarding both the recent purchase of the home and the pending foreclosure.

The District Attorney said his office began an investigation into the complaint and uncovered a group of individuals who are accused of fraudulently taking out mortgages on three houses located at 125-13 107th Avenue in Richmond Hill, Queens; 107-43 Union Hall Street in Jamaica, Queens; and 245A Schaeffer Street in Brooklyn. Among the charges, all of the defendants are accused of conspiring to defraud the lending banks – J.P. Morgan Chase and Wells Fargo – and falsifying mortgage records in an overall scheme that netted criminal mortgage proceeds of more than $1.4 million. The conspiracy allegedly involved the identity theft of two individuals – a resident alien who has since left the United States and a New Jersey woman – whose names and personal information were used to obtain large mortgages. The deeds and mortgages were allegedly forged and filed with the city registry. All of the mortgages are in default.

In the Dorothy Thomas case, the defendants are accused of recruiting someone to pose at the closing as her deceased husband, Eugene Thomas, who died in 1986 and in whose name the house remained. The house was allegedly sold to a straw buyer with a $490,500 mortgage issued by Wells Fargo. In the other two cases it is alleged the homes were sold by legitimate owners, but were purchased by straw buyers using the stolen identity of a woman in New Jersey and of a resident alien who no longer resides in the United States.

Those properties included a $533,850 mortgage issued by J.P. Morgan Chase on the Richmond Hill house and a $417,000 mortgage issued by J.P. Morgan Chase on the Brooklyn house.

Among the defendants is John D’Emic, an attorney who was appointed in January to serve as the Chief Deputy County Clerk in Brooklyn. He is accused of facilitating the transactions by providing false
documentation.

The investigation was conducted by Detective Patrick Dolan of the District Attorney’s Detective Bureau, under the supervision of Lieutenant Robert Burke, and under the overall supervision of Chief Investigator Lawrence J. Festa and Deputy Chief Investigator Albert D. Velardi.

Assistant District Attorneys Lauren D. Steele and Kristen A. Kane, Chief of the Elder Fraud Unit, is prosecuting the case, under the supervision of Assistant District Attorneys Gregory Pavlides, Bureau Chief of the District Attorney’s Economic Crimes Bureau, and Christina Hanophy, Deputy Bureau Chief, and the overall supervision of Executive Assistant District Attorney Peter Crusco and Deputy Executive Assistant District Attorney Linda Cantoni of the Investigations Division.

It should be noted that an indictment is merely an accusation and that a defendant is presumed innocent until proven guilty.

DEFENDANTS
Norman Barabash, 63, 249-12 Elkmont Avenue, Bellerose, N.Y. Barabash is a certified public accountant who has a home office. Barabash allegedly received payment for issuing a letter in the name of straw buyer Tolessi Enyonam stating that his tax returns had been prepared by Barabash for the preceding five years. Allegedly prepared other false letters for suspicious loan applications. If convicted, he faces up to seven years in prison.

Shamim, a.k.a. Sam, Choudhury, 35, 108-12 Union Hall Street, Jamaica, N.Y. Choudhury is an alleged “real estate investor” who is accused of recruiting the straw buyer who posed as widow Dorothy Thomas’ late husband and providing him with a false identification card. If convicted, he faces up to fifteen years in prison.

Gulam, a.k.a. Zack, Chowdhury, 22, 255 Pacific Avenue, Lawrence, N.Y., self-employed owner of real estate company known as Famous RE Construction and Development, Inc., located at 106-09 Guy R. Brewer Boulevard, Jamaica, N.Y. and cousin of Shamim Choudhury. Allegedly obtained the fraudulent identification used at the Union Hall Street closing and involved in the fraudulent sale of the 107th Avenue property. If convicted, he faces up to seven years in prison.

John D’Emic, 59, 25 72nd Street, Brooklyn, N.Y. D’Emic was an attorney in private practice at the time of the alleged crime. He was appointed Chief Deputy County Clerk, Kings County, in January. Allegedly acted as attorney for “buyer” or “seller” on each transaction, received money from the closing, gave a portion back to defendant Morris and prepared false letters regarding instructions for the disbursement of mortgage proceeds. If convicted, he faces up to four years in prison.

Daisy Guzman-Saavedra, 38, of 1383 Walter Road, Yorktown Heights, N.Y., self-employed owner of property management company known as EB Ventures and Property Management, located at 650 Soundview Avenue, Bronx, N.Y. and insurance company known as DAT Brokerage, Inc., located at the same address. Allegedly served as a fake employment and residence reference for the straw buyers on the fictitious loan applications. Allegedly received proceeds from the mortgages and also laundered other proceeds to co-defendants Persaud and Islam. If convicted, she faces up to 25 years in prison.

Nazrul Islam, 23, 167-10 Highland Avenue, Jamaica, N.Y., works at family grocery store, owner of Hevens Corporation, located at 168-25 A Hillside Avenue, in Jamaica, N.Y. Allegedly received portion of the mortgage proceeds for the use of his company as an employment reference on one of the loan applications and agreed to use his personal and/or business information to falsify other loan applications and verify the information to the banks when they called to confirm. If convicted, he faces up to fifteen years in prison.

Alan Morris, 58, 139 Celler Avenue, New Hyde Park, N.Y., disbarred as an attorney as of August 10, 1992, currently employed with John Weber and Associates, PC, with offices in Babylon and Brooklyn, N.Y. Allegedly handled all of the closings, was the bank’s attorney on each mortgage and represented one of the parties on some of the transactions, received additional funds from attorney D’Emic and prepared and submitted false letters relating to the disbursement of mortgage proceeds. If convicted, he faces up to four years in prison.

Boris Nektalov, 23, 150-50 77th Road, Flushing, N.Y., is a mortgage broker who was employed at the time of the alleged crime at Funding Unlimited, located at 95-20 63rd Road, in Rego Park, N.Y. He allegedly prepared and submitted false loan applications for the three mortgages. If convicted, he faces up to 25 years in prison.

Rajendar Persaud, a.k.a., Rommel Persaud, 35, 234 Cooper Drive Extension, Verbank, N.Y. Owner of RP Liberty Corp., who allegedly received funds from the proceeds of the mortgages, provided stolen identification information, laundered proceeds through co-defendant Guzman’s company, buyer and seller in the flip of 245A Schaeffer Street, and ultimately selling to one of the straw buyers. If convicted, he faces up to 25 years in prison.