NYC Mortgage Brokerage, Company Officials Face Federal Fraud Charges

A Newsday article appearing online at AM-NewYork reports that federal prosecutors have filed a criminal complaint in Brooklyn Federal court Wednesday charging ten people from Bangladesh in a mortgage fraud scheme that centered on that immigrant community.

According to the allegations in the complaint, no fewer than 13 legitimate mortgage banking companies were defrauded by the mortgage brokerage New Generation Funding. Reportedly, the company:

• "recruited the straw buyers to purchase properties in the city with false information on mortgage applications. But in late 2005, mortgage lenders became suspicious because of a high default and foreclosure rate involving deals done through New Generation, the complaint stated. Mortgage companies shared their suspicions with the FBI which began the investigation, said federal prosecutors. Those charged in the complaint included officials at New Generation as well as some straw buyers, according to court documents."

For more, see Ten charged in mortgage fraud scheme.

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