News and Press Releases

Mckees Rocks Man Gets Prison Time For Mortgage Fraud Scheme

FOR IMMEDIATE RELEASE
May 12, 2011

PITTSBURGH, Pa. ‑ A resident of McKees Rocks, Pa., has been sentenced in federal court to twelve months and one day in prison on his conviction of wire fraud conspiracy, United States Attorney David J. Hickton announced today.

United States Circuit Judge Michael D. Fisher imposed the sentence on John Chiavetta, 72.  Chiavetta was also ordered to pay approximately $274,000 in restitution and serve three years of supervised release.

According to information presented to the court, Chiavetta participated in a mortgage fraud conspiracy in which he applied fraudulently for seven loans totaling approximately $850,000, all of which are in foreclosure.  As part of the loan application process, Chiavetta and other members of the conspiracy submitted and signed fraudulent documents that overstated his income and assets, falsely represented that he intended to live in the properties serving as collateral for the loans, and falsely represented that he made significant down payments from his own funds to purchase properties when, in fact, he did not make any payments from his own funds to purchase the properties.  In fact, he received kickbacks from other members of the conspiracy to purchase the properties.

Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Chiavetta.  The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry.  Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service - Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service.  Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.

Mortgage industry members with knowledge of fraudulent activity are encouraged to call the Mortgage Fraud Task Force at (412) 894‑7550.  Consumers are encouraged to report suspected mortgage fraud by calling the Pennsylvania Attorney General's Consumer Protection Hotline at (800) 441‑2555.

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