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New York, N.Y. - (Feb. 18, 2009) LEV L. DASSIN, the Acting United States Attorney for
the Southern District of New York, and JOSEPH M. DEMAREST, JR.,
the Assistant Director-in-Charge of the New York Office of the
Federal Bureau of Investigation, announced the unsealing of
charges against SHARMON HOWELL, a/k/a "Sharmon Wade," DAVID
MOORE, JUNE PERSAUD, and OSCAR ANCRUM, a/k/a "Red," a/k/a
"Manny," for their roles in a "sub-prime" mortgage fraud scheme
involving more than two dozen loans which totaled over $10
million. HOWELL, 35, of Queens, New York, was arrested earlier
this morning in Manhattan and is expected to be presented later
today in Manhattan federal court. PERSAUD, 45 of Brooklyn, New
York, is expected to surrender to authorities tomorrow. MOORE,
40, of Brooklyn, New York, and ANCRUM, 54, of New York, New York,
remain at large. According to the Indictment unsealed in
Manhattan federal court earlier today:
From 2006 through 2007, HOWELL was the leader of a
scheme to obtain dozens of home mortgage loans by fraud.
Specifically, the defendants submitted to various banks and
lenders mortgage applications and supporting documentation which
contained false and misleading information. The defendants
obtained over $10 million in sub-prime mortgages for individuals
and on terms that the lender would not have approved had the
defendants not submitted the fraudulent documents.
To further the fraud scheme, the defendants recruited
individuals, or "straw buyers," to purchase properties in and
around New York City. The straw buyers were recruited from,
among other places, a halfway house in New York City that served
individuals recently released from prison and a public housing
complex in Brooklyn. The defendants told the straw buyers that,
by purchasing the homes, they would be assisting sellers who were
trying to save their homes from foreclosure and/or that
purchasing the homes would be a good investment opportunity.
Several of the straw buyers were also told that they would not
have to worry about paying the mortgage because the defendants
would make payments for several months, and thereafter would
repurchase and/or sell the properties from the straw buyers.
The defendants typically obtained mortgages on behalf
of the straw buyers for amounts greater than the actual sale
price of the homes. To do so, the defendants obtained fraudulent
appraisals for the homes, and misrepresented to the lenders
various material facts about the straw buyers’ income, assets,
debts, and intent to live in the properties they were purchasing.
After obtaining these mortgages, the defendants
distributed among themselves the difference or "spread" between
the price of the house and the inflated value of the mortgage.
Thereafter, in some instances, the defendants rented the property
out and made mortgage payments for a time before allowing the
mortgage to go into default; in other instances, the defendants
simply failed to make mortgage payments as promised, resulting in
the straw buyers of certain of the properties going into default
on the mortgage. Currently the vast majority of the mortgages
obtained by the defendants are in default and/or foreclosure.
Each defendant is charged with one count of conspiracy
to commit bank fraud and wire fraud. In addition, HOWELL and
MOORE are charged with six counts of bank fraud and two counts of
wire fraud; PERSAUD is charged with two counts of bank fraud and
one count of wire fraud; and ANCRUM is charged with two counts of
bank fraud. The conspiracy charge and the bank fraud charges
each carry a maximum potential sentence of thirty years in prison
and a fine of the greater of $1 million, or twice the gross gain
or loss resulting from the crime. Each wire fraud charge carries
a maximum sentence of twenty years in prison and a fine of the
greater of $250,000, or twice the gross gain or loss resulting
from the crime.
The Indictment also seeks the forfeiture of $10 million
from the defendants. The forfeitures represent the alleged
proceeds obtained from the charged offenses.
The case is assigned to United States District Judge
GEORGE B. DANIELS.
Mr.
DASSIN praised the investigative work of the
Federal Bureau of Investigation.
Assistant United States Attorneys AMANDA KRAMER and
MARK LANPHER are in charge of the prosecution.
The charges and allegations contained in the Indictment
are merely accusations, and the defendants are presumed innocent
unless and until proven guilty.
SOURCE: United State Department of Justice -- Southern District of New York
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