Monday, December 06, 2010

Westchester County Sale Leaseback, Equity Stripping Foreclosure Rescue Ripoff Leads To Six Convictions, One Acquittal; One Mistrial

In Westchester County, New York, the Westwood-Washington Township Patch reports:
  • Westwood resident Wilma Shkreli, also known as Wilma Gecay, will be sentenced Tuesday for her role in a $1.4 million mortgage fraud scheme in Westchester County, N.Y. Shkreli, 33, pled guilty in April to one count of Grand Larceny in the Second Degree, a class C Felony, according to the Westchester County District Attorney's Office. She could now be sent to New York state prison for between 1 1/3 and three years. She also faces a fine of $34,000.

  • Four other defendants in the case pled guilty. One defendant was found guilty at trial, another was acquitted and a third proceeding was declared a mistrial.(1)

***

  • Charges came after a nine-month investigation by the District Attorney's Office and the New York State Banking Department's Criminal Investigations Bureau. The defendants allegedly defrauded four families and two mortgage lenders in Westchester County out of $1.4 million from March 2004 to January 2007.

  • According to officials, the defendants convinced property owners facing foreclosure to sign over their homes with the option of re-purchasing them in one to two years. The investigation found four families that were victims: from Croton-on-Hudson, Yorktown Heights, Cortlandt Manor and the City of Mount Vernon, all in Westchester County, N.Y.(2)

Source: Westwood Resident To Be Sentenced In New York Mortgage Fraud Case (Wilma Shkreli faces up to three years in prison).

See also, The Journal News: 1 convicted, 1 exonerated, 1 mistrial in mortgage-fraud trial (when link expires, TRY HERE and TRY HERE).

(1) The other defendants in this racket:

  • Amerigo DiPietro, Brewster, N.Y.: Pled guilty Aug. 23 to three counts of Grand Larceny in the Second Degree, one count of Scheme to Defraud in the First Degree and one count of Conspiracy in the Fourth Degree. DiPietro faces five to 15 years in state prison and a forfeiture order of $243,795. He will be sentenced Jan. 31, 2011.
  • Doreen Swenson and Herbert "Phil" Hall, Tarrytown, N.Y.: Pled guilty May 4 to one count of Grand Larceny in the Second Degree. The husband and wife who posed as foreclosure rescue specialists were sentenced to two to six years in state prison Aug. 5.

The following attorneys were also prosecuted in this matter:

  • Attorney David Reback, Rye Brook, N.Y.: Pled guilty July 23 to four counts of Grand Larceny in the Second Degree, one count of Scheme to Defraud in the First Degree and one count of Conspiracy in the Fourth Degree. He faces five to 15 years in state prison and a forfeiture order of $50,000 and will be sentenced Jan. 31, 2011.
  • Attorney Eileen Potash, Fresh Meadows, N.Y.: Convicted Nov. 29 on one count of Conspiracy in the Fourth Degree. Potash faces 1 1/3 to three years in state prison and will be sentenced Feb. 28, 2011.
  • Attorney Frank Corigliano, Newtown, Conn.: Was acquitted of the charges against him following a jury trial.
  • Attorney Mildred Didio, New York, N.Y.: Remains charged with two counts of Grand Larceny in the Second Degree, one count of Scheme to Defraud in the First Degree and one count of Conspiracy in the Fourth Degree. Her case resulted in a mistrial Nov. 30 and will reportedly be retried, according to this story.

(2) For earlier reports on this story, see:

posted by Home Equity Theft Reporter at 4:04 AM