NYC Feds Indict Four On Mortgage & Insurance Fraud

In New York City, the North Country Gazette reports:

• Four individuals have been indicted in Manhattan federal court on charges of participating in an associated insurance fraud scheme. Dominick Devito, Robert Didonato, John Liscio and Louis Cordasco Jr. were each charged with insurance fraud and in addition Devito and Didonato where charged in a wide-ranging scheme to commit mortgage fraud. Devito is also charged with obstruction of justice.

• Prosecutors say that from January 2002 through November 2004, Devito was the leader of a fraudulent real estate investment scheme, which had as its primary objective the purchase of multimillion-dollar residential properties in various communities in Westchester County, including Purchase, with loans obtained through the submission of false and misleading information to banks and other lenders.

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• In addition, from January 2003 through February 2005, the four allegedly engaged in a scheme to defraud insurance companies by submitting false and misleading insurance claims and supporting documents for water damage caused by broken pipes at several of the homes purchased as part of the mortgage fraud scheme. Liscio was a licensed insurance agent who sold insurance policies to the owners of the homes purchased in the scheme and helped Devito submit insurance claims for water damage.

For more, see Four Charged In Insurance, Mortgage Fraud.