New York man pleads guilty in mortgage fraud scheme

As part of the scheme, Jacob Deutsch provided false rent records and forged leases to victim financial institutions and their appraisers, who either overstated the number of tenants by listing fictitious tenants or others who did not live there. not actually, or wrongly inflated the amount of rent paid. by the occupants, officials described.

Read more: New Jersey man gets nine years in prison for mortgage fraud

“Jacob Deutsch tricked the inspectors into thinking unoccupied apartments were occupied by staging the apartments with furniture and getting BHPM employees to falsely tell the inspectors they lived there and lie to the inspectors if asked if there were any vacancies,” the statement said. “For example, a rent register and summary of income and expenses submitted by Jacob Deutsch to CBRE Capital Markets, Inc. (“CBRE”) in June 2018 incorrectly indicated that 16 Evergreen Avenue was 100% occupied when in fact, not a single tenant resided there at the time. Jacob Deutsch later emailed CBRE photos of money orders and checks purporting to reflect rent payments from bogus tenants on the falsified rent lists at 16 Evergreen Avenue to show proof of rent payment while in fact, the money orders and checks had been purchased by Aron Deutsch or employees of BHPM under the direction of Aron Deutsch.

Jacob Deutsch also provided the victimized financial institutions with false and inflated tax returns and financial statements for the properties, doctored bank statements, doctored or forged documents exaggerating the purchase price of various multi-family dwellings, as well as checks and doctored invoices showing false or overstated capital improvements. to these properties, the affidavit noted.

“The false information provided by Jacob Deutsch prompted the victim financial institutions to grant loans that they would not otherwise have granted on the terms requested, or for amounts greater than those they would have authorized if they had received truthful information. “, wrote officials. “Furthermore, the misinformation prompted Freddie Mac and Fannie Mae to purchase the resulting loans from the victim financial institutions and prompted HUD to issue a mortgage insurance commitment to a victim financial institution.”

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