Valley Streamer charged in mortgage scheme
Group of 14 allegedly defrauded $58 million over five year period
A Valley Stream man was among more than a dozen people arrested last week for an alleged mortgage fraud scheme involving at least 100 mortgage loans worth more than $58 million.
In an indictment filed by the U.S. Attorney’s Office of the Southern District of New York and the New York Office of the FBI, the men allegedly took part in the scheme between 2004 and 2009 while employed by the mortgage brokerage firm, First Class Equities, which has offices in Oceanside and Westbury.
Among the indicted are Michael Charles, 61, of Valley Stream, Gerard Canino, 50, the president and owner of First Class Equities, and Ralph Delgiorno, 38 of Merrick. In total, 14 individuals were charged in the indictment.
The indictment alleges that the defendants deceived homeowners, banks and lenders by falsifying personal and financial information and other legal documents to obtain mortgage loans, and then kept the proceeds. If convicted, many of the defendants face up to three decades in jail.
Delgiorno, who was identified as a straw buyer in the indictment, allegedly purchased 10 mortgages on properties through First Class Equities within a short period of time in 2006. As payment for acting as a straw buyer, Delgiorno allegedly received $300,000 in fraud proceeds from First Class Equities.
In Delgiorno’s purchases, according to the indictment, Charles authorized the transfer of title, acting as the real estate title closer. Charles submitted the deeds to the county clerk’s office to be recorded.
“As alleged, this brazen and wide-ranging scheme defrauded banks and lenders of millions and enriched its participants, including real estate professionals who took advantage of their inside knowledge of the system to fleece it,” said Preet Bharara, the U.S. Attorney for the Southern District of New York who was appointed personally by President Barack Obama, in a written statement.
According to Bharara, the defendants targeted properties whose homeowners were in financial distress and were having trouble making mortgage payments.
