NEW YORK MAN SENTENCED TO TWO YEARS IN FEDERAL
PRISON FOR PARTICIPATING IN MORTGAGE FRAUD CONSPIRACY
David B. Fein, United States Attorney for the District of Connecticut, announced that GARY SNOOK, 62, of Yorktown Heights, N.Y., was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by three years of supervised release, for participating in a mortgage fraud conspiracy.
According to court documents and statements made in court, between approximately October 2003 and August 2006, SNOOK and others engaged in a conspiracy to defraud various residential mortgage lenders in connection with the financing of residential properties in Connecticut. SNOOK owned and operated York Accounting and Financial Services, which had an office in Danbury. At the request of an individual who was a loan originator who worked for several mortgage brokerage firms, SNOOK created false loan documentation, including fraudulent letters and phony tax returns that inflated prospective borrowers’ income. The documents were then faxed to the lenders in order to qualify prospective borrowers for mortgage loans.
The investigation revealed that SNOOK created fraudulent documentation in association with 18 mortgage loans. Many of the loans ended in default, and the properties were foreclosed on. As a result, lenders have suffered losses of more than $1 million.
As part of his sentence, SNOOK faces an order of restitution of up to $1,329,723.
On May 14, 2010, SNOOK pleaded guilty to one count of conspiracy to commit wire fraud.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney Paul Murphy.
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 firstname.lastname@example.org.
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.
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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