| |
Detroit, MI. -- (October 3, 2007) -- Safi Sobh, 34, of Dearborn, was sentenced to serve ten years in prison after being convicted
by a jury of leading a mortgage fraud conspiracy that obtained inflated appraisals on residential
properties, created false applications and obtained millions of dollars in bank loans, United
States Attorney Stephen J. Murphy announced today.
Murphy was joined in the announcement by Andrew G. Arena, Special Agent In Charge
of the Detroit Field Office of the Federal Bureau of Investigation.
Sobh was also ordered to pay restitution of $1,256,579, and to serve 3 years under the
supervision of the Court upon his release from the custody of the Bureau of Prisons. The
sentence was imposed by U.S. District Judge Patrick J. Duggan. Judge Duggan took the
government's request for an order of forfeiture under advisement.
The evidence presented during trial established that between July 2002 and December
2005, Sobh led a large conspiracy that successfully corrupted the system of checks and
balances lending institutions rely upon to determine how much money they can safely lend on
a property, and whether a particular borrower is qualified to repay the loan. Ohio Savings
Bank, Commercial Federal Bank and several other federally insured financial institutions relied
upon the false representations of the conspirators and loaned millions of dollars, most of which
has not been recovered. Working out of his realty, The Success Group, Sobh hand-picked
and taught his co-conspirators how to commit these crimes. Eight indicted co-conspirators
pleaded guilty to acting as corrupt loan originators, processors, appraisers, and straw buyers.
United States Attorney Stephen J. Murphy said, "Today's 10-year prison sentence of
this mortgage fraud ring leader should leave no doubt that schemes undermining the integrity
of the banking system will not go unpunished. The successful investigation of this highly
complex and sophisticated fraud case, which culminated in a three-week jury trial, required a
significant commitment of resources by the FBI and by the trial team from my office, and I
commend them for their efforts." U.S. Attorney Murphy stated.
U.S. Attorney Murphy thanked the FBI for the successful investigation of the case,
which was prosecuted by Assistant United States Attorneys Cynthia Oberg and Julie Beck.
SOURCE: Department of Justice - Eastern District of Michigan
|
