Kevin M. O’Connell, Mortgage Fraud, New York 2013

A pair of Albany-based mortgage fraudsters have been handed prison time for their roles in a long-running scheme that bilked banks out of millions.

Sydney, NY—In a stunning turn of events, Kevin M. O’Connell, 35, and his father Kevin D. O’Connell, 62, both of Albany, NY were sentenced to 24 months incarceration by Senior District Court Judge Norman A. Mordue in Syracuse on February 5, 2013.

The O’Connells were principal and employee, respectively, of PB Enterprises, a company accused of orchestrating a series of transactions that defrauded banks offering mortgages in the Albany area. The scheme involved recruiting buyers to purchase properties at inflated prices, with promises of ‘no money down’ and checks at closing.

However, PB Enterprises would then provide false information to lenders, obtaining mortgages at the higher purchase price. The principals would then split the excess mortgage money with the buyers, disguising the fact that the mortgage proceeds had been diverted. The restitution figures imposed by Judge Mordue represent the losses suffered by the lenders from this practice.

The exact dollar amounts of the losses are staggering, with Kevin M. O’Connell ordered to pay restitution in the amount of $2,275,584.88 and a forfeiture judgment in the amount of $4,628.886.48. His father Kevin D. O’Connell was ordered to pay restitution in the amount of $2,136,444.09.

This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division in Albany, NY. Further questions or inquiries may be directed to Assistant United States Attorney Michael Olmsted, the prosecutor handling the case, at (315) 448-0672.

The sentencing of the O’Connells brings to a close a long-term mortgage fraud investigation that has seen several other individuals and organizations implicated. Michael Crowley, another principal of PB Enterprises, is scheduled to be sentenced on February 5, 2013, in Syracuse. A closing agent used by PB Enterprises and Team Title, attorney Michael G. Bouchard, was found guilty of conspiracy and bank fraud after trial in Syracuse in December.

The O’Connells’ sentencing serves as a stark reminder of the consequences of mortgage fraud and the importance of transparency in financial dealings.

Defendant:

Kevin M. O’Connell

Kevin D. O’Connell

Criminal Charges:

Mortgage Fraud

City and State:

Syracuse, NY

Exact Date:

February 5, 2013

Sentence or Outcome:

24 months incarceration

Dollar Amounts:

$2,275,584.88

$4,628.886.48

$2,136,444.09

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