Wednesday, June 09, 2010

Definitely Sub Prime: Two Lawyers and Credit Suisse Struck

Guilt in $10.6 Million (subprime) Mortgage Fraud

New England Merchants, a broker and lender, was shut down in October 2009, by the Massachusetts Division of Banks on charges that the firm processed fraudulent subprime loan applications.

Five defendants, including two lawyers, were found guilty of wire fraud charges this week in a $10.6 million mortgage fraud. The two lawyers were also convicted of money laundering.

After a fire at the Coleman Street property a year later, Levine and Lamerique collected $266,827 in insurance proceeds and divided the money among the four involved in the scheme, the government said. Most of the cases were simpler: The defendants borrowed more money than the agreed upon sale price, paid the seller, and pocketed the extra money, the government said. ... In March 2006, a property in the oceanfront community of Cohasset was purchased for $385,000, but the mortgage from New Century Mortgage in California was for $635,000 - $250,000 more than the sale price.

Boston lawyer Elliot Weinstein, who was in court to represent Ernst Appolon, questioned why the Justice Department agreed to release the lawyers, while detaining the other defendants. Officials said some of the defendants were Caribbean immigrants.
All face possible fines and potential prison terms up to a maximum of 20 years. Three other codefendants pleaded guilty.



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