David Saks: OWNER / PRESIDENT OF LONG ISLAND MORTGAGE BROKERAGE GUILTY OF FRAUD - $66 MILLION SCHEME

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

OWNER / PRESIDENT OF LONG ISLAND MORTGAGE BROKERAGE GUILTY OF FRAUD - $66 MILLION SCHEME

Brokerage Owner Admits $66M Mortgage Fraud Scam

Gerard Canino, 51, Merrick, New York, the president and owner of Long Island-based mortgage brokerage firm First Class Equities, pled guilty to conspiring to commit wire fraud and bank fraud in connection with a $66 million mortgage fraud scheme. Canino pled guilty before U.S. District Judge Robert P. Patterson.

According to the Plea Agreement, as well as statements made in public proceedings:

Canino was the president and owner of First Class Equities, a mortgage brokerage firm with offices located in Oceanside and Old Westbury, New York. From 2004 to 2009, Canino and his firm engaged in a massive mortgage fraud scheme that recruited "straw buyers" – individuals who posed as home buyers but had no intention of living in, or paying for, the mortgaged properties – to purchase homes from willing sellers, many of whom were in financial distress. Canino and his co-conspirators often paid the straw buyers for their participation in the scheme.

At Canino's direction, loan officers at First Class Equities submitted applications to banks and lenders on behalf of the straw buyers that made fraudulent representations about their net worth, employment, and income. They also fraudulently stated that the sham buyers planned to live in the properties for which the mortgage applications were made. After approving the loans, the lenders sent the mortgage proceeds to their attorneys, including several that were participants in the scheme.

These attorneys submitted false statements to the lenders about how they were distributing the loan proceeds and then made huge illicit payments, typically totalling tens of thousands of dollars or more per transaction, from the loan proceeds to members of the conspiracy.

Canino pled guilty to one count of conspiracy to commit wire fraud and bank fraud and faces a maximum sentence of 30 years in prison. Canino will be sentenced by Judge Patterson on September 17, 2012, at 4:00 p.m.

Preet Bharara, the United States Attorney for the Southern District of New York, announced the guilty plea.

Mr. Bharara praised the FBI for its outstanding work in the investigation.

This case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes  representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Charges are still pending against Canino's co-defendants, and they are presumed innocent unless and until proven guilty. Trial of the remaining defendants is scheduled to begin on July 2, 2012.

This matter is being handled by the Office's Complex Frauds Unit. Assistant U.S.

Attorneys Nicole Friedlander and Niketh Velamoor are in charge of the criminal case.

Manhattan U.S. Attorney Preet Bharara said: "As the president and owner of First Class Equities, Gerard Canino should have promoted responsible homeownership and protected the integrity of the mortgage finance industry. Instead, he used his firm to commit a massive mortgage fraud scheme that left scores of foreclosed properties in its wake. With today's plea, Canino now stands convicted for his role in this brazen scheme."




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • April 11 2012 12:53PM

Comments

This blog does not allow anonymous comments