Closing Attorney Gets 12 Months For Role In Illegal Short Sale/Flipping Racket; Used Two Sets Of False, Misleading Paperwork, Double HUD-1s To Dupe Banksters Into Taking Less Than Entire Debt Balance In Full Satisfaction Of Their Delinquent Mortgages

From the Office of the U.S. Attorney (Newark, New Jersey):

• A Westfield, New Jersey, man was sentenced [] to 12 months in prison for his role in a large-scale mortgage fraud scheme in which he obtained more than $1 million in illegitimate proceeds, U.S. Attorney Paul J. Fishman announced.
  
  Amedeo Gaglioti, 60, previously pleaded guilty [...] to an information charging him with wire fraud affecting a financial institution and money laundering. Judge Wigenton imposed the sentence [] in Newark federal court.
  
  According to documents filed in this case and statements made in court:
  
  From December 2007 through August 2010, Gaglioti engaged in a scheme to swindle mortgage lenders by causing fake “short sale” transactions and fraudulently obtaining mortgage loans relating to properties primarily located in northern New Jersey.
  
  Gaglioti was the closing attorney for these transactions. As part of the scheme, Gaglioti would prepare two sets of false and misleading closing documents, including HUD-1s,  for short sale flip transactions. Through the preparation of these documents, as well as other acts, lenders accepted proceeds of purported short sales in full satisfaction of an existing mortgage. Gaglioti also caused lenders to fund mortgages based upon false and misleading information and documentation. Gaglioti obtained more than $1 million in illegitimate proceeds as a result of the scheme.
  
  In addition to the prison term, Judge Wigenton sentenced Gaglioti to serve three years of supervised release, ordered him to pay restitution of $2,001,245.89 and entered a forfeiture judgment of $1 million.

Source: New Jersey Attorney Sentenced To One Year In Prison For His Role In Large Scale Mortgage Fraud Scheme.