Pittsburgh Resident Indicted for Fraud and Conspiracy to Maliciously Destroy East Carson Street Property by Fire
PITTSBURGH - A Plum Borough resident has been sentenced in federal court to 135 months in prison on her convictions of filing false tax returns, failing to file tax returns, and mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Lisa Gerideau-Williams, 47, of Kensington, Pa.
According to information presented to the court, Gerideau-Williams was an attorney who operated a mortgage broker business called Genesis Home Solutions, and two companies specializing in closing real estate transactions - Millennium Settlement Services and Professional Settlement Solutions. Through these companies Gerideau-Williams operated a complex and multi-faceted fraud scheme.
One aspect of the scheme involved the submission of loan applications to lenders. The loan applications were fraudulent because Gerideau-Williams submitted them without the authority of the borrowers and they contained false information related to the borrowers' financial condition. For example, Gerideau-Williams submitted loan applications on behalf of her brother and her elderly aunt that were not authorized by either. In addition, Gerideau-Williams represented to lenders that her elderly aunt owned and operated a lucrative cleaning business when, in fact, her aunt was a retired state worker. Gerideau-Williams also furthered the fraud by submitted fake documents supporting the misrepresentations in the loan applications and by forging the signature of her brother and her aunt.
Gerideau-Williams' fraud also related to her operation of businesses that closed real estate transactions. Gerideau-Williams received money from lenders into her trust account that was required to be disbursed to pay liabilities associated with the collateral. In that way the lender would stand in the first lien position related to the collateral. Gerideau-Williams, rather than paying those liabilities, would simply take the money and use it to support her lavish lifestyle.
Gerideau-Williams also defrauded borrowers. Borrowers paid for title insurance and for other services such as recording deeds and mortgages. Rather than providing these services, however, Gerideau-Williams simply took the fees for those services, but failed to actually provide those services.
Title insurance companies were also victimized by Gerideau-Williams' fraud. At closings, Gerideau-Williams collected fees from borrowers for title insurance. Gerideau-Williams, however, failed to remit those payments to the title insurance companies. In addition, some of the title insurance companies terminated Gerideau-Williams authority to issue title insurance under their names. Despite the termination, however, Gerideau-Williams continued to issue title insurance on fraudulent transactions as if she was authorized to do so.
Gerideau-Williams' fraud was particularly egregious related to property located in Pittsburgh, Pa. Prior to 2005, Gerideau-Williams rented that property and it was her residence. On Sept. 6, 2005, through her fraudulent businesses, she sold the property from the rightful owner to her elderly aunt without the knowledge of either the owner or her aunt. A lender financed the purchase, and Gerideau-Williams simply took all of the proceeds from the transaction for her personal benefit. Gerideau-Williams, however, did not record the deed or the mortgage related to the property and therefore the property still appeared on the public record to be owned by the rightful owner of the property free of any mortgages.
On March 13, 2006, Gerideau-Williams arranged to purchase the property in her own name financed through a fraudulently obtained loan. While she recorded the deed transferring ownership of the property to her own name, she did not record the mortgage and therefore, according to the public record, it appeared that she owned the property free of any liens.
On Aug. 7, 2006, Gerideau-Williams sold the property to her brother, and her brother financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau-Williams received the proceeds from the sale, but she did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
On Jan. 19, 2007, Gerideau-Williams sold the property to her brother again, and her brother again financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau- Williams again received the proceeds from the sale, but she again did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
Finally, on Feb. 20, 2007, Gerideau-Williams sold the property to her brother again, and her brother again financed the purchase through a fraudulently obtained loan secured by Gerideau-Williams. Gerideau-Williams again received the proceeds from the sale, but she again did not record the deed or the mortgage and therefore the public record still showed that she owned the property free of any liens.
Equally egregious are the various loans Gerideau-Williams secured in the name of her elderly aunt. As mentioned above, Gerideau-Williams arranged for her aunt to purchase property from the rightful owner. That purchase was financed through a loan fraudulently obtained by Gerideau-Williams.
Gerideau-Williams' aunt owned a home in Harrisburg, Pa. On Nov. 2, 2005, Gerideau-Williams arranged for a fraudulent refinance loan collateralized by her aunt's Harrisburg property. On Jan. 30, 2007, Gerideau-Williams arranged for a second fraudulent refinance transaction collateralized by that same property.
On March 12, 2007 and March 21, 2007, Gerideau-Williams, without the authority of her elderly aunt, secured two other refinance transactions collateralized by that same property. For each transaction, Gerideau-Williams took the proceeds from the loans and used those proceeds to support her lavish lifestyle. In neither of those transactions, however, did she record the mortgages. In connection with those transactions she issued title insurance without the authority of the title insurance companies, forged her aunt's signature on various documents, and failed to pay the liabilities associated with the collateral as required by the lenders.
For the 2004, tax year Gerideau-Williams, who took taxation classes at Georgetown University School of Law toward an advanced degree in tax law, filed tax returns that drastically understated her income because she failed to include the more than a million dollars earned in the course of her fraud schemes. For that 2005 and 2006 tax years, she did not file her income tax returns.
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 Gerideau-Williams.