States Attorney's Office District of Connecticut
|June 14, 2010||
FORMER SOMERS RESIDENT PLEADS GUILTY TO FEDERAL BANK FRAUD, MONEY LAUNDERING CHARGES
David B. Fein, United States Attorney for the District of Connecticut, announced that SABIR MOGHUL, 71, of Manchester, waived his right to indictment and pleaded guilty today before Chief United States District Judge Alvin W. Thompson in Hartford to one count of bank fraud and one count of money laundering.
According to court documents and statements made in court, in 2005, MOGHUL applied for two mortgage loans from different banks, each in an amount of more than $1 million, using his former residence at 110 Long Hill Drive in Somers as collateral. Each loan was supposed to be secured with a first mortgage on the residence, but at no time did MOGHUL inform either lender that he had applied for another loan to be secured by the same property.
During the application processes, MOGHUL’s residence was appraised twice. One appraisal valued the residence at approximately $1,600,000 and a second appraisal valued the residence at approximately $1,800,000.
MOGHUL received approval for each loan and scheduled one closing to occur at his home at 10:30 a.m. on May 13, 2005, and a second closing to occur on the same day at 11:45 a.m. During the first closing, MOGHUL signed mortgage loan documents for a loan in the amount of $1,080,000 from Lehman Brothers Bank. At the second closing, MOGHUL signed mortgage loan documents for a loan from Washington Mutual in the amount of $1,200,000.
After the closings, Lehman Brothers Bank recorded a first mortgage and Washington Mutual Bank recorded a secondary security interest. MOGHUL subsequently defaulted on the loans and the home went into foreclosure. Washington Mutual sustained a loss of approximately $1,200,000 as a result of MOGHUL’s fraud.
In August 2005, MOGHUL applied $445,000 of the fraudulently obtained loan proceeds to the purchase of a medical office building located in Hamden. The building has since been sold through foreclosure.
Judge Thompson has scheduled sentencing for September 2, 2010, at which time MOGHUL faces a maximum term of imprisonment of 30 years and a fine of up to approximately $2.3 million on the bank fraud count, and a maximum term of imprisonment of 10 years and a fine of up to $1 million on the money laundering count.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Anastasia Enos King.
U.S. ATTORNEY'S OFFICE
Department of Justice
Project Safe Neighborhoods