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ATTORNEY RECEIVES SIX YEAR SENTENCE IN IN LARGE-SCALE MORTGAGE FRAUD RING

Wednesday, November 10, 2010

BOSTON, Mass. - A Boston lawyer convicted of conspiracy, wire fraud and money laundering was sentenced today for the roles he played in a mortgage fraud ring that involved 21 fraudulent property transactions in the Greater Boston area defrauding 10 mortgage lenders of more than $ 10.6 million in loan proceeds.

J. DANIEL LINDLEY, 64, of Jamaica Plain, was sentenced by U.S. District Judge George A. O’Toole, Jr. to a term of 72 months imprisonment to be followed by three years of supervised release.

A total of 11 defendants were indicted in May of 2008. Lindley and four other defendants were convicted of Conspiracy and Wire Fraud counts by a federal jury following a seven-week trial in June 2010. Five defendants pleaded guilty before the trial, and one defendant is pending trial in February 2011.

The Government’s evidence showed that between May 2005 and June 2006, the defendants participated in a conspiracy to obtain $10.6 million in mortgage loan proceeds by fraud. The scheme involved the use “straw” buyers, inflated purchase prices and documents containing numerous false representations, including false information about the purchase price, borrower income, employment, and intent to reside in the property. The difference between actual purchase prices negotiated with sellers and the inflated purchase prices submitted to lenders ranged as high as $255,000 on properties in South Boston, Dorchester, Jamaica Plain, Quincy, Hyde Park and Cohasset, aggregating to more than $1.9 million. From this $1.9 million, the defendants pocketed more than $1.7 million in illegal proceeds. The mortgages on all of the properties were defaulted upon and nearly all went into foreclosure. Lindley was the closing attorney for all 21 transactions. He executed closing documents containing false representations to the lenders, including false HUD-1 Closing Statements he executed, false statements that the “straw” buyers would occupy the properties, and in some instances other fraudulent documents Lindley created and executed at closings. Mortgage funds were wired by lenders to Lindley’s bank account and he participated in the distribution of loan proceeds to other defendants.

Lindley is the eighth defendant sentenced to date. On October 18, 2010, Judge O’Toole sentenced Daniel Appolon to 42 month in prison and ordered co-defendant Samuel Jean-Louis to serve a prison term of 22 months. On October 20, 2010, Ernst Appolon was sentenced to prison for 120 months and on October 21st Jermaine Blake was ordered to serve a prison term of 30 months. On October 28, 2010, the court sentenced Widner Lamarre to prison for 60 months. On November 1, 2010, LaToya Haltiwanger was sentenced to 30 months and Jean Noriscat was sentenced to a prison term of 87 months. Eric Levine and Andre Lamerique are pending sentencing.

United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Robert Bethel, Postal Inspector in Charge of the United States Postal Inspection Service, Boston Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation - Boston Field Office; Boston Mayor Thomas M. Menino; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U. S. Attorneys Victor A. Wild and Ryan M. DiSantis of Ortiz’s Economic Crimes Unit and Mary B. Murrane, Chief of Ortiz’s Asset Forfeiture Unit.

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Mortgage fraud is a key focus of the Department of Justice who in November 2009 created the Financial Fraud Enforcement Task Force. The task force works 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.

 

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