41 Charged in Mortgage Fraud

The U.S. Attorney’s office is charging 41 people with participating in mortgage fraud schemes that preyed on New York homeowners facing foreclosure.

Richard Neiman, the Superintendent of Banks for New York State, says many of the accused are working in the industry, including attorneys licensed with the state.

NEIMAN: The gatekeepers, the individuals and professionals who were supposed to protect individuals and institutions: the mortgage brokers, the mortgage bankers, the appraisers, the attorneys, violated their legal trusts and responsibilities.

REPORTER: In some of the cases, authorities say the victims responded to radio ads by companies claiming they could help resolve foreclosure cases. In all, the defendants are accused of defrauding consumers of a total $64 million.

One of the businesses implicated is Guy American Funding Corporation in Queens. It’s accused of using straw buyers to flip properties for their equity. The defendants in this case face 30 years in prison and a fine of up to $1 million.