In the following press release Mary Beth Buchanan, United States Attorney for the Western District of Pennsylvania announced that the filing of a one-count Information charging Robert Arakelian, age 47, of 356 S. Negley Avenue, Pittsburgh, Pennsylvania, with Wire Fraud Conspiracy.

According to the Information, Arakelian worked as a licensed mortgage broker for Pittsburgh Home Loans that assisted borrowers in obtaining loans collateralized by real estate. The Information alleges that Arakelian participated in a conspiracy to defraud lenders by submitting to the lenders appraisals knowing that the appraisals vastly overstated the true fair market values of real estate that served as collateral for the loans. The Information also alleges that Arakelian submitted loan applications that he knew were false because they overstated the assets of the borrowers to make it falsely appear as though they had sufficient funds to pay the down payments, and false Verifications of Deposit that falsely verified that the borrowers had sufficient funds to make the down payments in bank accounts.

U.S. District Judge Nora Barry Fischer will schedule a date for Arakelian’s entry of aguilty plea.

These cases are being prosecuted by Assistant United States Attorney Brendan C. Conway. The Mortgage Fraud Task Force conducted the investigation leading to the indictments and Bill of Information in these cases.

Update on Friday, July 17, 2009 at 8:35AM by The Editor - Ian Shuter - ACFE, DMS

The Pittsburgh Tribune reports that Robert Arakelian, 47, has pleaded guilty. Arakelian was a licensed mortgage broker for Pittsburgh Home Loans. He was part of a conspiracy that defrauded lenders of more than $1 million with inflated appraisals and false loan applications, prosecutors said.

He is scheduled to be sentenced by U.S. District Judge Nora Barry Fischer on Nov. 13.