4 indicted in 16 property Detroit fraud scheme
Wednesday, August 27, 2008 at 10:18AM |
In the following press release it was announced by Acting United States Attorney Terrence Berg and Andrew G. Arena, Special Agent-In-Charge of the Federal Bureau of Investigation in Detroit that a seventeen-count indictment charging four defendants with conspiracy, bank fraud, and mail fraud was returned by a federal grand jury on August 20, 2008. According to the indictment, Hassan Nagi, 30, of Dearborn Heights, Ali Haidous, 24, of Dearborn, Safi Bzeih, 35, of Dearborn, and Hussein Aoun, 23, of Dearborn Heights conspired to secure fraudulent mortgages on 16 properties between April 2005 and April 2008. The value of the mortgages totaled $1.9 million. The properties were located in Detroit, Dearborn, and Dearborn Heights. The loans were issued by various national financial institutions, including Countrywide Bank, Washington Mutual, Fifth Third Bank, IndyMac Federal Bank, Net Bank, and Sun Trust bank. The indictment alleges Nagi worked as a mortgage broker and was responsible for submitting false and fraudulent applications to obtain the mortgages. Haidous was a real estate appraiser who provided fraudulent appraisals for the properties. Bzeih and Aoun recruited sellers and “straw buyers” for the properties. According to the indictment, after the defendants identified a willing seller of a property, Nagi secured financing for a “straw buyer.” False income and employment information was provided to the lender using fraudulent W-2 forms. In support of each loan, Nagi also submitted an inflated appraisal, created by Haidous. After the inflated mortgage was funded at closing, the seller received sufficient funds to pay off any existing mortgage as well as a “bonus” for participating in the mortgage fraud scheme. The remainder of the proceeds from the inflated mortgage were shared between the defendants and straw buyer. Acting United States Attorney Berg said, “Mortgage fraud is a serious and economically damaging crime because it harms both our financial institutions as well as the integrity of the market. These are not victimless crimes and we will do all we can to ensure that those who commit fraud are brought to justice.” “We remain dedicated to preventing mortgage fraud and putting unrelenting pressure on these criminal groups,” Arena said. An indictment is a charging document and not evidence of guilt. Each and every defendant is presumed to be innocent. Nagi,
Haidous, and Bzeih are expected to appear in federal court before
Magistrate Judge Virginia Morgan at 1:00 p.m. on Thursday, August 21,
for their initial appearances and arraignment on the indictment. Aoun
is a fugitive in Lebanon. |
The Editor - Ian Shuter - ACFE, DMS
In the following press release it was announced that a Dearborn real estate appraiser was sentenced to one year imprisonment in connection with a multi-million dollar mortgage fraud scheme, United States Attorney Terrence Berg announced today. Berg was joined in the announcement by Andrew G. Arena, Special Agent-In-Charge of the Federal Bureau of Investigation in Detroit.
Ali Haidous, 25, pled guilty to conspiracy to commit bank fraud on October 14, 2008 before U.S. District Judge George Caram Steeh. Haidous admitted to inflating appraisals in a scheme involving sixteen total properties located in Detroit, Dearborn, and Dearborn Heights. Mortgages totaling $1.9 million were issued on the 16 properties by Countrywide Financial, Washington Mutual, Fifth Third Bank, IndyMac, and other financial institutions between April 2005 and April 2008. Haidous admitted to being paid $1,000 – rather than his usual fee of $300-$500 – for each fraudulent appraisal.
Haidous prepared the fraudulent appraisals for co-defendant Hassan Nagi, 30, a mortgage broker from Dearborn Heights, who used the fraudulent appraisals to submit false applications to obtain the mortgages for “straw buyers.” Nagi pled guilty on December 15, 2008. His sentencing is set for April 16, 2009.
United States Attorney Terrence Berg said, “The crime of mortgage fraud is touching the lives of far too many Americans. We continue to push hard in this office to investigate and prosecute more of these wrongdoers who have preyed on our financial institutions and increased the cost of home ownership for all citizens. These are not victimless crimes and we will work tirelessly to ensure that those who commit mortgage fraud are brought to justice.”
Special Agent in Charge Andrew G. Arena said, “Mortgage fraud is the FBI’s highest financial crime priority. In this case, the FBI focused on the real estate industry professionals, or the “insiders”, who have manipulated the mortgage loan process for their own financial gain. We will continue to utilize every resource available to ensure mortgage fraud cases are investigated and prosecuted.”
Two other defendants, Safi Bzeih, 35, of Dearborn, and Hussein Aoun, 23, of Dearborn Heights, remain in the case. No trial date has been set.
The case is being prosecuted by Assistant U.S. Attorney Leonid Feller.
The Editor - Ian Shuter - ACFE, DMS
A Dearborn mortgage broker was sentenced to 20 months’ imprisonment in connection with a multi-million dollar mortgage fraud scheme, United States Attorney Terrence Berg announced today. Berg was joined in the announcement by Andrew G. Arena, Special Agent-In-Charge of the Federal Bureau of Investigation in Detroit. Nagi was also ordered to pay restitution in the amount of $1 million dollars.
Hassan Nagi, 31, pled guilty to conspiracy to commit bank fraud on December 15, 2008 before U.S. District Judge George Caram Steeh. Nagi admitted that from April 2005 to April 2008, while working as a loan officer at Superior Mortgage, Premier Mortgage Funding, and First Mortgage, he defrauded a half-dozen financial institutions in a sixteen-property, $1.9 million fraud scheme carried out in Detroit, Dearborn, and Dearborn Heights. Nagi secured financing from various banks – including Countrywide Financial, Washington Mutual, Fifth Third Bank, and IndyMac – for “straw buyers” using inflated appraisals (prepared by co-defendant Ali Haidous) and falsified income documents. Nagi then split the proceeds of the
fraud with his co-defendants when the mortgages were abandoned.
United States Attorney Berg stated, “The current economic environment demands vigorous enforcement and stiff punishment against those who obtain mortgages under false pretenses and thereby increase the cost of home ownership for all Americans. These are not victimless crimes and we will work tirelessly to ensure that those who commit fraud are brought to justice.”
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