TWO NEW HAMPSHIRE MEN CHARGED IN
WIRE AND MAIL FRAUD SCHEMES
CONCORD, NEW HAMPSHIRE: Acting United States Attorney Gretchen Leah Witt Special Agent in Charge of the Federal Bureau of Investigation Warren Bamford, and Postal Inspector in Charge Randy Miskanic announced today that Scott Farah and Donald Dodge have been charged by a grand jury for the District of New Hampshire with wire fraud mail fraud relating to the operation of a mortgage brokering firm, Financial Resources Mortgage, Inc. and a mortgage servicing entity, C L and M, created to provide services to the brokering firm.
The indictment alleges in count one that Scott Farah engaged in mail fraud, or so-called Ponzi scheme, in the operation of Financial Resources Mortgage, In. during the period from 1989 through November 2009, resulting in an alleged loss of more than $33 million. Count two alleges that Farah and Dodge engaged in a wire fraud scheme from on or about June 1, 2005 through November 2009 in which funds obtained from private lenders were provided to Farah by CL and M under a line of credit agreement that was never disclosed to the private lenders. The loss alleged in count two, which is a part of the loss alleged in count one, is more than $20 million.
A trial is scheduled for June 2, 2010 in the United States District Court. The Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation with the assistance of the Securities and Exchange Commission, the New Hampshire Department of Justice, the New Hampshire Department of Securities Regulation and the New Hampshire Banking Commission.
An indictment is the way a formal charge is brought against a defendant. All defendants are presumed innocent of any charge brought in an indictment until guilt is proven beyond a reasonable doubt.