Stamford Man Admits Role in Mortgage Fraud Scheme
|U.S. Attorney’s Office June 16, 2014|
The United States Attorney for the District of Connecticut announced that ASM AFSARY, 41, of Stamford, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2005 and 2013, AFSARY participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport and Stamford. During the scheme, AFSARY and his co-conspirators provided materially false information to mortgage lenders. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions, and false HUD-1 Forms.
In pleading guilty, AFSARY admitted that he recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, AFSARY was the intended owner of the property, managed the property, and collected all of the rents from the property.
Through this scheme, lenders suffered losses of more than $7 million. Many of the properties involved in this mortgage fraud scheme ended up in foreclosure or in short sale transactions.
AFSARY pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum term of imprisonment of 30 years. Judge Hall scheduled sentencing for October 1, 2014.
AFSARY is the fourth individual involved in this scheme to plead guilty.
This ongoing investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds.