Former Las Vegas Resident Sentenced for Mortgage Fraud Crimes
Las Vegas, Nev. – A former Las Vegas resident who recruited persons to submit false mortgage loan applications to a federally insured bank during 2003 to 2005, causing losses to the bank of approximately $2.4 million, has been sentenced to six months of house arrest and five years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada. Manfredonia was also ordered to pay restitution and to forfeit to the government an additional $1,032,462, and was barred from employment in the mortgage and real estate industries.
Joseph Manfredonia, 43, currently of East Rutherford, New Jersey, was sentenced on Thursday, January 27, 2011, by U.S. District Judge Philip M. Pro. Manfredonia pleaded guilty on September 13, 2010, to conspiracy to commit bank fraud, mail fraud and wire fraud. He was indicted in June 2008 along with co-defendant Kevin Wright, who also pleaded guilty to the same charge and was sentenced on November 15, 2010, to 21 month in prison.
From about 2003 through December 2004, Manfredonia entered into a conspiracy to recruit straw buyers with good credit to buy houses in LasVegas. Manfredonia caused false information regarding employment, income, assets, and payment history to be included on the straw buyers' loan applications for first and second mortgages so the straw buyers would qualify for loans which they would not otherwise qualify. Manfredonia caused the loan applications to be forwarded to the financial institutions for the funding of first and second mortgages. The second mortgages were funded by Wells Fargo Bank. Manfredonia caused the funds from the second mortgages to be diverted by wire transfer to his bank account and to the bank account of Kevin Wright for their own use. From about August 2003 to October 2005, Manfredonia and Wright caused approximately six second mortgages to be funded by Wells Fargo Bank causing a loss to the bank of approximately $2.4 million.
The case was investigated by the FBI and IRS Criminal Investigation and prosecuted by Assistant United States Attorney Brian Pugh.
Persons who have information concerning potential mortgage fraud may contact the Southern Nevada Mortgage Fraud Hotline at (702) 584-5555.