Albany-Area Pair Get Two Years In Cash Back Mortgage Scam

In Albany, New York, North Country Gazette reports that Matthew J. Kupic and Francis T. Disonell, both 38 and of Clifton Park, NY, were sentenced in Federal court last week to prison for two years and ordered to make restitution in the amount of $887,311 to victim banks for their participation in a mortgage and tax fraud scheme. Each was also ordered to forfeit over $600,000 in the fraudulent mortgage proceeds that they obtained from the mortgage fraud scheme. From the story:

• As part of the scheme, sales contracts and other documents submitted to mortgage lenders contained forged signatures and other false statements. For some real estate transactions, Kupic and Disonell created and utilized “Repair Rebate Agreements” which identified future upgrades to the subject properties that purportedly were going to be completed by the buyers with loan proceeds.

• Prosecutors said the duo knew these upgrades would never be completed and, in fact, they never were completed. Repair Rebate Agreements were merely a mechanism the defendants used to get loan funds to the buyer, themselves, and third parties without making any disclosure of the disbursements to the lenders. Kupic and Disonell also arranged for multiple purchases with the same buyer, to take place close in time – often on the same day – so that subsequent lenders did not learn of the buyer’s recent loans and liabilities.

For more, see Two Sentenced For Mortgage, Tax Fraud Scheme.