Two Loan Officers Sentenced In Manhattan Federal Court For Participating In A $9 Million Mortgage Fraud Scheme
FOR IMMEDIATE RELEASE
Tuesday, August 21, 2012
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that FREDERICK WARREN and DENISE PARKS, two loan officers, were sentenced in Manhattan federal court for their roles in a $9 million mortgage fraud scheme in which 12 people were originally charged and 11 have pled guilty. WARREN was sentenced to 51 months in prison and ordered to forfeit $1,993,000 after pleading guilty on April 11, 2012 to one count of conspiracy to commit wire fraud and bank fraud and one count of wire fraud. PARKS was sentenced to time served and ordered to forfeit $2,554,000 after pleading guilty on April 19, 2012 to one count of conspiracy to commit wire fraud and bank fraud. U.S. District Judge Naomi R. Buchwald imposed both of today’s sentences.
Manhattan U.S. Attorney Preet Bharara said: “Frederick Warren and Denise Parks will now be forced to forfeit over $4.5 million in ill-gotten gains from a scheme that left banks holding the bag for bogus mortgages that should never have been issued. Their punishments should serve as another reminder that we will aggressively prosecute those who engage in mortgage fraud schemes.”
According to the Indictment and statements made in court proceedings:
WARREN, PARKS, and 10 other individuals, defrauded various lending institutions by using fictitious and fraudulent “straw identities” to apply for mortgage loans. WARREN and PARKS prepared and processed the fraudulent mortgage applications. Through the scheme, the defendants were able to obtain more than $9 million in mortgage loans for the purchase of dozens of residential properties throughout the New York City metropolitan area and Long Island. Most of the loans quickly went into default.
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In addition to his prison term, WARREN, 38, of Miller Place, New York, was sentenced to three years of supervised release. He was also ordered to forfeit $1,993,000 and to pay a $200 special assessment fee.
In addition to her prison term, PARKS, 46, of Olive Branch, Mississippi, was sentenced to two years of supervised release. She was also ordered to forfeit $2,554,000 and to pay a $100 special assessment fee.
Co-defendants Jeffrey Larochelle, Dorian Brown, Fritz Bonaventure, Joell Barnett, Foriduzzaman Sarder, Sakat Hossain, Mikael Huq, Eric Finger, and Reginald Johnson also previously pled guilty. Sarder was sentenced to 78 months in prison, Hossain was sentenced to 29 months in prison, and Huq was sentenced to 42 months in prison. All three defendants were sentenced by Judge Buchwald. The remaining defendants await sentencing.
Criminal charges remain pending against Brandon Lisi. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding investigative efforts of the New York Attorney General’s Office, which led the investigation and has collaborated in the prosecution. He also thanked the Federal Bureau of Investigation and the New York State Department of Financial Services for their assistance in this case.
This case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Michael D. Lockard and Ryan P. Poscablo, and Assistant Attorney General Meryl Lutsky – who is designated as a Special Assistant U.S. Attorney in this case – are in charge of the prosecution.