Verona Real Estate Conspirators Hit With Fraud Charges

PITTSBURGH – In a stunning move against mortgage fraud in Pennsylvania, federal prosecutors have indicted George Kubini, 48, of Verona, and three Pittsburgh residents, Dov Ratchkauskas, 46, Sandra Svaranovic, 52, and Arthur Smith, 63. They are charged with conspiracy, wire fraud, bank fraud, filing false tax returns, and failing to file tax returns.

The alleged scheme, involving over a dozen individuals including Kubini and Ratchkauskas’ real estate businesses, is said to have defrauded lenders out of tens of millions of dollars. The duo is accused of selling properties financed through the fraudulent scheme, executing settlement statements they knew were false, and making false representations about property improvements.

Robert Arakelian, Rhonda Roscoe, and Rochelle Roscoe, former mortgage brokers, are also implicated in the conspiracy. They’re charged with submitting loan applications that falsely represented borrowers’ intent to make payments and assets available at closing. The scheme also included financial institution employees who signed fraudulent Verifications of Deposit.

Attorney Daniel Sporrer and his assistant Karen Atkison executed some of the fraudulent settlement statements, while Smith is accused of executing fraudulent settlements, withdrawing money from his trust account fraudulently, and making misrepresentations to a title insurance company. Svaranovic, also an attorney, prepared fraudulent appraisals that misrepresented property conditions and values.

Kubini faces charges for filing false income tax returns, while Smith failed to file tax returns for the years 2007 through 2020. The investigation is ongoing.

United States Attorney David J. Hickton announced the charges, which were returned on March 26, 2013. If convicted, the defendants could face substantial penalties under federal law.