In the following press release it was announced that Terrence White, age 35, of Oxon Hill, Maryland, pled guilty to mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia using false mortgage and settlement documents, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Osman Sharrieff Al-Bari, age 34, of Washington, D.C. was arrested today for mail and wire fraud, and Jamilah Al-Bari, age 35, of Districts Heights, Maryland, was arrested for mail fraud, arising from this scheme. Their indictment [click here to view it] was returned on February 10, 2009.

[Ed. note the properties subject of the indictment are listed below]

1429 W. Lombard Street, Baltimore, Maryland 21223
32 Q Street, Washington, DC 20001
34 Q Street, Washington, DC 20001
119 Bates Street NW, Washington, DC 20001
152 N. Potomac Street, Baltimore, Maryland 21224
34 N. Milton Street, Baltimore, Maryland 21224
146 N. Potomac Street, Baltimore, Maryland 21224
148 N. Potomac Street, Baltimore, Maryland 21224
11516 Little Bay Harbor Way, Spotsylvania, Virginia 22553
127 N. Potomac Street, Baltimore, Maryland 21224
11207 Fawn Lake Parkway, Spotsylvania, Virginia 22553

According to his plea agreement, White and others paid over 15 straw purchasers $10,000 per property to purchase houses for White and others. White created false mortgage and settlement documents, many of which misrepresented the straw purchasers’ income and assets. White and others also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties. Using these false invoices, White and others were “repaid” at closing for the purported renovations. White was an organizer and leader in this scheme. From 2006 to 2008, White and others received approximately $3,830,418 in fraudulent funds as part of this scheme. Many of the purchased properties have been foreclosed upon.

The eleven count indictment alleges that Osman and Jamilah Al-Bari performed the same acts in the scheme as White. The indictment also alleges that Osman received wire transfers of $515,820 for the purported renovations of properties. Jamilah is alleged to have abused her position as a business banking liaison at a Maryland bank by: creating several false documents to verify assets for straw buyers; sending false verification letters on bank letterhead to banks and mortgage lenders to facilitate the fraud scheme; and creating fictitious bank employees to sign some of the false verification letters. Jamilah is alleged to have received a check or cash, disguised as a consulting fee, for each fraudulent transaction she helped to facilitate.

The indictment alleges that the total value of these fraudulent loans was approximately $18 million. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

All three defendants face a maximum sentence of 30 years in prison for mail fraud. Osman also faces a maximum sentence of 30 years for wire fraud. No sentencing date has been scheduled for White. Osman and Jamilah Al-Bari had their initial appearances in federal district court at 3:00 p.m. today.

Timothy Reed, age 43, of Beltsville, Maryland, pleaded guilty on February 10, 2009 to mail fraud in connection with his participation in this scheme. No sentencing date has been set.

Sabrina Weinberg, age 44, of Bethesda, Maryland, pleaded guilty on November 18, 2008 to mail fraud in connection with her role in the scheme. No sentencing date has been set.

No trial date has been set for co-defendant Kara McIntosh, who was indicted on the same charges on November 18, 2008.

United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Montgomery County State’s Attorney’s Office - Economic Crimes Unit and the U.S. Secret Service for their investigative work and assistance. Mr. Rosenstein commended Assistant United States Attorney Kwame J. Manley, who is prosecuting the case.

Kara McIntosh, age 46, of Bethesda, Maryland, pleaded guilty today [Plea Agreement] to mail fraud arising from the fraudulent purchase of properties in Maryland and the District of Columbia using false mortgage documents, announced [Press Release] United States Attorney for the District of Maryland Rod J. Rosenstein.

According to the plea agreement, McIntosh, Timothy Reed and others recruited straw buyers to purchase houses. McIntosh knew the straw purchasers were not planning to live in the properties and did not qualify for the home mortgages. Some of the straw buyers purchased multiple properties at the same time. To enable straw buyers to purchase the properties, McIntosh was paid to prepare fraudulent mortgage applications which misrepresented the straw buyers’ income and assets. McIntosh also received part of the fraudulently obtained mortgage funds. For example, at one closing, McIntosh falsely claimed $109,600 for “renovations” that her company, Washington Finance Group, purportedly performed. No such renovations ever occurred.

Beginning in 2006, this scheme involved fraudulent loans worth over $19,021,366. Over 10 individuals and banks were harmed. The loss amount foreseeable to McIntosh is between $2.5 and $7 million. Many of the purchased properties have been foreclosed upon.

McIntosh faces a maximum sentence of 30 years in prison. U.S. District Judge J. Frederick Motz has not yet scheduled her sentencing.

Osman Sharrieff Al-Bari, age 35, of Washington, D.C., pleaded guilty today to mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to his plea agreement, Al-Bari, along with Terrence White, Timothy Reed and others paid straw purchasers $10,000 per property to purchase houses for them. Many of the loan applications for the straw buyers had misrepresentations concerning the buyers’ income and assets. Al-Bari and others had the straw buyers list false asset information claiming large account balances at various banks and used a co-conspirator who worked at one of the banks to send “verification letters” falsely confirming that the straw buyers had such assets.

For example, co-defendant Sabrina Weinberg purchased four properties for Al-Bari and others and was paid approximately $40,000 for the purchases. Weinberg and other straw purchasers used fraudulent loan applications and closing documents to qualify for the mortgages. The mortgage documents had false income amounts, misrepresentations concerning Weinberg’s other mortgage loans (which she did not disclose), and false claims about her assets. Co-conspirator Kara McIntosh prepared many of the mortgage documents. Each property was listed as Weinberg’s primary residence.

Al-Bari, White and Reed also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties. Using these false invoices, Al-Bari and his co-conspirators were “repaid” at closing for the purported renovations. Al-Bari, Reed, White, and others received wire transfers of $515,820 for the four Weinberg properties.

Al-Bari and others repeated this fraud scheme with over fifteen straw buyers and approximately twenty-five properties in Maryland, Washington, D.C., and Virginia. Al-Bari was an organizer and leader in the scheme and from 2006 to 2008, Al-Bari,

White, Reed and others received approximately $3,830,418 in fraudulent funds as part of the scheme. Many of the purchased properties have been foreclosed upon. Al-Bari is responsible for $2.5 million in losses from the scheme.

Al-Bari faces a maximum sentence of 30 years in prison for mail fraud. U.S. District Judge J. Frederick Motz has scheduled sentencing for October 5, 2009 at 9:00 a.m.

Timothy Reed, age 44, of Beltsville, Terrence White, age 36, of Oxon Hill, Sabrina Weinberg, age 44 and Kara McIntosh, age 47, both of Bethesda, have all pleaded guilty to mail fraud in connection with their participation in this scheme. No sentencing dates have been set.

United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Montgomery County State’s Attorney’s Office - Economic Crimes Unit and the U.S. Secret Service for their investigative work and assistance. Mr. Rosenstein commended Assistant United States Attorney Kwame J. Manley, who is prosecuting the case.

In the following press release Rod J. Rosenstein, United States Attorney for the District of Maryland announced that a federal grand jury has indicted Jay Leonard, age 43, of Alexandria, Virginia, today for mail and wire fraud in connection with scheme involving the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia and a scheme to solicit investors for a resort property that did not exist.

The indictment was returned on August 11, 2009 and Leonard is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:00 p.m.

According to the nine count indictment, February 2006 through September 2008, Leonard, a title agent, working with co-conspirator Osman Al-Bari and others, solicited funds from victims in Maryland for a $10 million spa resort in Spotsylvania County, Virginia, that Leonard, Al-Bari and others claimed they were developing. According to the indictment, Leonard used his position as title agent and falsely claimed that he was doing a closing for the spa resort. Based on those allegedly false representations, the Maryland victims transferred $478,000 to Leonard’s bank account.
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Additional Materials

• Press Release
• Indictment

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The indictment further alleges that, working with Osman Al-Bari, Timothy Reed, Terrence White and others, Leonard served as the title agent for several straw purchasers who bought at least 20 properties in Maryland, Virginia and Washington, D.C. For example, the indictment alleges that co-conspirator Sabrina Weinberg purchased four properties for Al-Bari and others and was paid approximately $40,000 for the purchases. Weinberg and other straw purchasers used fraudulent loan applications and closing documents to qualify for the mortgages and to disguise the true buyer of the property. According to the indictment Jay Leonard had Weinberg sign false affidavits claiming that each property was her primary residence. Further, the indictment alleges that Leonard kicked back a portion of the settlement funds from the straw buyer properties, disguising the wire transfers on the closing documents as reimbursement for alleged “renovations” performed on the properties prior to closing by Brotherly Investment Group, a company owned by Al-Bari, Reed and White. The indictment alleges that for the Weinberg properties alone, Leonard sent wire transfers totaling $515,820 to Al-Bari, Reed and White.

According to the indictment, almost all of the properties Leonard was involved with went into foreclosure, causing actual losses of over $7 million.

Jamilah Al-Bari, age 37, of District Heights, Maryland, pleaded guilty today to mail fraud arising from the fraudulent purchase of properties in Maryland, the District of Columbia and Virginia, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to her plea agreement, Jamilah Al-Bari participated in a scheme with her brother, Osman Sharrief Al-Bari and others to pay straw purchasers to purchase houses for them using false loan documents.  Jamilah Al-Bari abused her position as a business banking liaison at M&T Bank in Upper Marlboro, Maryland and created false documents purporting to verify assets for the straw buyers.  She also sent false verification letters concerning the buyers’ income and assets on M&T Bank letterhead to banks and mortgage lenders to facilitate the fraud scheme. Jamilah Al-Bari created a fictitious M&T Bank employee and used the fictitious employee’s name to sign some of the false verification letters. 

Plea agreement

U.S. District Judge J. Frederick Motz sentenced Osman Sharrieff Al-Bari, age 35, of Washington, D.C., today to 78 months in prison followed by five years of supervised release for mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to his plea agreement, Al-Bari was a leader in the scheme in which he, along with his sister Jamilah Al-Bari, Terrence White, Timothy Reed and others, paid straw purchasers $10,000 per property to purchase houses for them. Many of the loan applications for the straw buyers  misrepresented the buyers’ income and assets. Al-Bari and others had the straw buyers claim large account balances at banks and had Jamilah Al-Bari, who worked at one of the banks, send “verification letters” falsely confirming that the straw buyers had such assets.

Full press release

On October 16, 2009 U.S. District Judge J. Frederick Motz sentenced Sabrina Weinberg, age 44, of Bethesda, Maryland, today to two years in prison followed by three  years of supervised release for mail fraud arising from a multi-million dollar mail fraud scheme to purchase numerous properties in Maryland, Virginia and Washington, DC, using fraudulent mortgage and loan applications, announced United States Attorney for the District of Maryland Rod J. Rosenstein.  Judge Motz also entered a restitution order against Weinberg for $2,551,698.

 Full Press Release

U.S. District Judge J. Frederick Motz sentenced Kara McIntosh, age 47, of Bethesda, Maryland, today (10/19/2009) to three years in prison followed by three years of supervised release for mail fraud arising from the fraudulent purchase of properties in Maryland and the District of Columbia using false mortgage documents, announced United States Attorney for the District of Maryland Rod J. Rosenstein.  Judge Motz also entered a restitution order against McIntosh of $3,362,970.

According to her plea agreement, beginning in 2006, McIntosh, Timothy Reed and others recruited straw buyers to purchase houses.  McIntosh knew the straw purchasers were not planning to live in the properties and did not qualify for the home mortgages.  Some of the straw buyers purchased multiple properties at the same time.  To enable straw buyers to purchase the properties,  McIntosh was paid to prepare fraudulent mortgage applications which misrepresented the straw buyers’ income and assets.  McIntosh also received part of the fraudulently obtained mortgage funds.  For example, at one closing, McIntosh falsely claimed $109,600 for “renovations” that her company, Washington Finance Group, purportedly performed.  No such renovations ever occurred.

This scheme involved fraudulent loans worth over $19,021,366.  Over 10 individuals and banks were harmed.  The loss amount foreseeable to McIntosh is between $2.5 and $7 million.  Many of the purchased properties have been foreclosed upon.   

Full Press Release

U.S. District Judge J. Frederick Motz sentenced Terrence White, age 35, of Oxon Hill, Maryland, today to 42 months in prison, followed by three years of supervised release for mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia using false mortgage and settlement documents, announced United States Attorney for the District of Maryland Rod J. Rosenstein.   Judge Motz also entered a restitution order against White in the amount of $4,196,967.

According to his plea agreement, White, Timothy Reed, Osman Al-Bari and others paid over 15 straw purchasers $10,000 per property to purchase houses for White and others.  White created false mortgage and settlement documents, many of which misrepresented the straw purchasers’ income and assets.  White, Reed and Al-Bari also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties.  Using these false invoices, White and his co-conspirators were “repaid” at closing for the purported renovations.  

This scheme involved fraudulent loans worth over $19,021,366.  Over 10 individuals and banks were harmed.  The loss amount foreseeable to White is between $2.5 and $7 million.  Many of the purchased properties have been foreclosed upon. 

Press Release