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Federal Housing Finance Agency – Office of Inspector General

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Ex-Chief Lending Officer Of NJ Bank Gets 18 Months In Fed Pen For Lying On SBA Loan Ex-Chief Lending Officer Of NJ Bank Gets 18 Months In Fed Pen For Lying On SBA Loan
Ex-Chief Lending Officer Of NJ Bank Gets 18 Months In Fed Pen For Lying On SBA Loan A former New Jersey bank chief lending officer from Pennsylvania was sentenced to 18 months in federal prison Wednesday for lying to the Small Business Administration, authorities said. James Bortolotti, 53, will have to serve just about all of the term because there's no parole in the federal prison system. Bortolotti signed off on an application to the SBA for a guaranteed $3.75 million on $5 million in loans given to a small Robbinsville business by First Choice Bank in Trenton even though he knew the information about the company's credit-worthiness was false, Acting U.S. Attorney for N…

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by Jerry DeMarco
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Long Island Man Sentenced In NJ/NY ‘Shotgun’ Mortgage Scheme That Cost Banks $9 Million Long Island Man Sentenced In NJ/NY ‘Shotgun’ Mortgage Scheme That Cost Banks $9 Million
Long Island Man Sentenced In NJ/NY ‘Shotgun’ Mortgage Scheme That Cost Banks $9 Million A Long Island man was sentenced to a year and a day in federal prison for his role in a $9 million ‘shotgun’ mortgage scheme in New Jersey and New York. Yorce Yotagri, 54, of Freeport admitted last year that he partnered with Jorge Flores of Oakdale and Jose Piehrahita, also of Freeport, to secure several home equity lines of credit for the same properties and pocket the money before the lending banks found out, Acting U.S. Attorney Rachael A. Honig said. One of those properties was in Jersey City, a complaint filed in U.S. District Court in Newark says. Yotagri lived on another in Fre…

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by Jerry DeMarco
Police & Fire
Bergen Broker Gets 18 Months In Fed Pen For 'Short Sale' Scam Bergen Broker Gets 18 Months In Fed Pen For 'Short Sale' Scam
Bergen Broker Gets 18 Months In Fed Pen For 'Short Sale' Scam A Bergen County real estate broker was sentenced to a year and a half in federal prison for his role in a $4.6 million “short-sale” scheme. Steve Young Kang, 66, of Ridgefield, and others sold properties to an accomplice, Mehdi Kassai, for substantially less than they were worth, Acting Principal Assistant U.S. Attorney and Executive Assistant U.S. Attorney Rahul Agarwal said. The conspirators used false documents, straw buyers and cosmetic property damage, while also restricting the ability of others to bid on and buy those properties, Agarwal said. Kassai then “sold many of those propert…

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by Jerry DeMarco
Police & Fire
Long Island Man Admits Role In NJ/NY ‘Shotgun’ Mortgage Scheme That Cost Banks $9 Million Long Island Man Admits Role In NJ/NY ‘Shotgun’ Mortgage Scheme That Cost Banks $9 Million
Long Island Man Admits Role In NJ/NY ‘Shotgun’ Mortgage Scheme That Cost Banks $9 Million A Long Island man admitted in federal court in Newark that he participated in a $9 million ‘shotgun’ mortgage scheme in New Jersey and New York. Yorce Yotagri, 53, of Freeport partnered with two other Long Island men – identified as Jorge Flores of Oakdale and Jose Piehrahita, also of Freeport – to secure several home equity lines of credit for the same properties and pocket the money before the lending banks found out, U.S. Attorney for New Jersey Craig Carpenito said. One of those properties was in Jersey City, a complaint filed in U.S. District Court in Newark says. Yotagri lived on ano…

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by Jerry DeMarco
Police & Fire
Bergen Brokers Admit $4.6M 'Short Sale' Scam Bergen Brokers Admit $4.6M 'Short Sale' Scam
Bergen Brokers Admit $4.6M 'Short Sale' Scam Two Bergen County real estate brokers – one from Ridgefield, the other from Norwood – admitted their roles in a $4.6 million “short-sale” scheme. Steve Young Kang, 64, of Ridgefield, and Young Jin Son, 49, of Norwood, New Jersey, told a federal judge in Newark on Thursday that they recruited others to participate in the bank and wire fraud conspiracies. Kang sold his own properties and recruited others to sell properties to a co-schemer, Mehdi Kassai, for substantially less than they were worth by using false documents, straw buyers and cosmetic property damage, as well as restricting the a…

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by Jerry DeMarco
Police & Fire
Short-Sale Scheme: Hawthorne Scammer Admits Conning Lenders Out Of More Than $6M Short-Sale Scheme: Hawthorne Scammer Admits Conning Lenders Out Of More Than $6M
Short-Sale Scheme: Hawthorne Scammer Admits Conning Lenders Out Of More Than $6M A Hawthorne con artist admitted his role Tuesday in defrauding financial institutions and others of more than $6 million. Mehdi “Mike” Kassai, 36, was part of a group of thieves who convinced mortgage lenders to participate in short-sale deals – which allow homeowners in trouble to sell for less than they owe on their mortgages, U.S. Attorney Craig Carpenito said. Kassai told a federal judge in Newark on Tuesday that he used bogus documents and buyers, damaged properties to lower their apparent value and “restricted the ability of others to bid and buy those properties,” Carpenito said. “T…

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by Jerry DeMarco
Police & Fire
Wyckoff Con Man Gets 12 Years In Fed Prison For Mortgage Fraud, Tax Evasion Wyckoff Con Man Gets 12 Years In Fed Prison For Mortgage Fraud, Tax Evasion
Wyckoff Con Man Gets 12 Years In Fed Prison For Mortgage Fraud, Tax Evasion WYCKOFF, N.J. -- A former settlement agent from Wyckoff was sentenced Monday to 12 years in federal prison for bank fraud and other crimes involving refinanced properties in Bergen and Morris counties. Unlike the state of New Jersey, there's no parole in the federal prison system -- meaning that Mark Andreotti, 47, must serve out nearly his entire sentence. Federal jurors last fall found Andreotti guilty of defrauding banks out of $1.1 million using phony property loan applications while failing to pay more than $450,000 in personal income taxes following a two-week trial. Prosecutors show…

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by Jerry DeMarco