TWO NEW YORK RESIDENTS CHARGED WITH
PARTICIPATING IN NEW HAVEN MORTGAGE FRAUD SCHEME
David B. Fein, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in New Haven returned a four-count indictment today charging RONALD E. HUTCHISON, JR., 49, of Hopewell Junction, New York, and JACQUES KELLY, 46, of Poughkeepsie, New York, with conspiracy and other offenses stemming from the defendants’ alleged involvement in a mortgage fraud scheme related to properties they purchased in New Haven, Conn.
The indictment alleges that HUTCHISON and KELLY conspired to commit mail and wire fraud relating to purchases of several homes in New Haven. Specifically, the indictment alleges that, as part of the conspiracy and in connection with these purchases, HUTCHISON and KELLY received millions of dollars in residential real estate loans by submitting materially false loan applications, fictitious leases, and false down payments to mortgage lenders. The indictment further alleges that HUTCHISON and KELLY conspired to disguise from mortgage lenders the true sales price of the houses through the use of two HUD-1 forms, only one of which was sent to the lender, and secret contract addenda.
The indictment charges HUTCHISON and KELLY with one count of conspiracy, a charge that carries a maximum term of imprisonment of 20 years. The indictment further charges HUTCHISON individually with two counts of mail fraud and HUTCHISON and KELLY with one count of wire fraud, each of which carries a maximum term of imprisonment of 20 years.
The indictment also contains a forfeiture allegation that requires each defendant, if convicted of any count of the indictment, to forfeit property and/or a money judgment of at least $5 million, as proceeds of this alleged scheme.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the U.S. Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys David T. Huang and Sarah P. Karwan.
In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an email to email@example.com.
The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.
This case was brought in coordination with the President’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive and coordinated effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
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