TOP DOT MORTGAGE MANAGER PLEADS GUILTY TO FRAUD CONSPIRACY IN WEST PALM BEACH
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Henry Gutierrez, Postal Inspector in Charge, U.S. Postal Inspection Service, Miami Division, Michael K. Fithen, Special Agent in Charge, U.S. Secret Service, J. Thomas Cardwell, Commissioner, State of Florida’s Office of Financial Regulation, and Alex Sink, Chief Financial Officer, State of Florida’s Department of Financial Services, announced that defendant Peter Hartofilis, 33, of Flushing, NY, pled guilty yesterday before U. S. District Judge Donald M. Middlebrooks to conspiracy to commit mail and wire fraud (Count 1), and mail fraud (Count 11), in violation of Title 18, United States Code, Sections 1349 and 1341, respectively. Sentencing has been scheduled for August 16, 2010 at 10:30 am.
According to documents filed with the court, from January 2006 through October 2007, Peter Hartofilis and co-defendant Jason Vitulano were branch managers of the TopDot Mortgage office in Boca Raton, FL and devised a scheme to submit fraudulent loan applications to numerous lenders. More specifically, the loan applications contained grossly inflated statements of the applicants' earnings and assets on deposit in a local bank. In addition, according to court documents and statements made in court, attorney Joseph Miller acted as closing agent and title agent on a number of these loan transactions. Miller agreed to divert loan proceeds to the personal accounts of Vitulano, Hartofilis and others without disclosing that fact to the mortgage lenders.
The four other defendants in the case, Vitulano, Miller, Hofler and Vento, have pled guilty and are currently awaiting sentencing. Defendant Robert Hofler pled guilty to the conspiracy charge on April 8, 2010. Hofler was a vice president at First Southern Bank in Boca Raton. According to documents filed in the case, Hofler used his position to falsify verification of deposit forms that were used to deceive lenders into believing that a prospective loan applicants had large balances on deposit at First Southern, which was not true. In reliance on these and other false statements in the loan applications, the lenders approved and funded more than $5 million in mortgage loans to purchase residences in Palm Beach and Broward Counties. Hofler is scheduled for sentencing on July 27, 2010 at 10:30 am.
Defendant Steve Vento purchased two properties, each valued at the time at over $1 million, by submitting false loan applications through Top Dot mortgage, through the work of Jason Vitulano. Vento is scheduled for sentencing on July 13, 2010 at 11:00 am.
Defendant Jason Vitulano, the other Top Dot Mortgage branch manager and alleged leader of the conspiracy scheme, is scheduled to be sentenced on July 19, 2010 at 10:30 am.
Defendant Joseph Miller, the attorney who was alleged to have acted as closing agent on a number of fraudulent loans, is scheduled to be sentenced on, August 9, 2010 at 10:30 am.
At sentencing, each of the defendants faces a maximum statutory term of imprisonment of up to 30 years in prison on each of the counts against them.
U.S. Attorney Ferrer commended the U.S. Postal Inspection Service, U. S. Secret Service, and the State of Florida’s Office of Financial Regulation and Department of Financial Services for their work in the case. This case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and Ellen Cohen, in conjunction with the Palm Beach County Mortgage Fraud Task Force.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.