New York City Mortgage Fraud criminal defense attorneys of Joseph Potashnik and Associates PC represent clients throughout NYC and Long Island who are investigated for, or charged with, mortgage fraud.

Mortgage-Related Offenses: Definition and Forms

Mortgage fraud is a willful misrepresentation of material facts on a loan application or other related documents with intent to influence the decision making of either the underwriter or lender or borrower. Such offenses may investigated and prosecution on state and federal level. The FBI’s Financial Institution Fraud Unit is in charge of investigating mortgage-related criminal allegations on the federal level. On the state level, such offenses in New York may be prosecuted under a variety of statutes including falsifying business records, forgery, scheme involving a security interest, fraudulent disposition of mortgaged property, bribery, scheme involving residential properties, larceny, etc.

The most common classification of this crime is the following:

  • Fraud for profit – revolving equity, inflating the value of the property, or issuing loans based on non-existent properties. This type is usually perpetrated by real estate business professionals, not buyers. Some common examples are equity skimming and property flipping.
  • Fraud for housing, which is committed by the borrower to unlawfully purchase and own property. It may take various forms, for example, misrepresenting income or employment history on the application to obtain a loan at a better interest rate, applying for the loan under another person’s name and credit history, which is sometimes called Nominee Loans, or Straw Buyers, scams, or even using a stolen or non-existent identity to apply for a loan. Another common example is Silent Second scheme, when the borrower takes out a second loan which is unknown to the seller, to cover the down payment.

Contact Our New York Mortgage Fraud Attorneys to Get Help

As you may see, such cases are extremely complex to defend. We at Joseph Potashnik and Associates PC have represented buyers as well as brokers, property appraisers, and other professionals in a multitude of both federal and state-level criminal investigations and court proceedings. Our attorneys have all necessary expertise and resources to successfully represent clients charged with any related offenses, no matter how complex the case is.

If you are subject to an investigation related to mortgages in NYC or a neighboring area, contact our criminal defense lawyers to discuss your case. The earlier you contact an attorney, the better chances your defense case has.

Here are some of our recent representative cases:

We successfully represented a mortgage broker prosecuted for his part in a massive straw buyer and flipping scheme, securing a sentence of probation.

Our lawyers defended a client indicted for recruiting straw buyers in a massive $100 million real estate flipping scheme. The client was facing 6 years in prison but was sentenced to 2 years.

Call us today at (212) 577 6677 to set up an immediate consultation.