Bronx Realtor Gets Time Served in $790K Mortgage Scam

BUFFALO, N.Y. – Alagi Samba, 50, of the Bronx, walked out of court a free man today, receiving a sentence of time served for his part in a brazen mortgage fraud scheme that bilked lenders out of nearly $800,000. Chief U.S. District Judge Frank P. Geraci, Jr. handed down the sentence after Samba was convicted of conspiracy to commit wire and mail fraud affecting a financial institution. But the slap on the wrist didn’t come without a hefty price – Samba was also ordered to pay restitution totaling $790,350.40 to M&T Bank and the U.S. Department of Housing and Urban Development.

The scheme, which ran from approximately June 2008 to February 2009, centered around securing mortgages for borrowers who had no business qualifying. Assistant U.S. Attorney Elizabeth Moellering laid out the details: Samba, acting as a realtor for co-conspirator Daniel Badu, knowingly facilitated the purchase of a Bronx property with a fraudulent loan application. Badu, a home health aide, couldn’t possibly afford the $574,543 mortgage, but Samba allegedly turned a blind eye to that fact.

Samba didn’t just look the other way; he actively participated in the deception. He allegedly handed over Badu’s personal and business information to a co-conspirator mortgage broker, knowing full well the documents would be doctored. The broker transformed Badu’s credentials, falsely claiming he was an ophthalmologist running a company called Eagle Eyes. Fake paystubs and tax returns were also submitted, painting a completely fabricated picture of Badu’s financial stability. This allowed the loan, insured by the Federal Housing Administration, to sail through approval.

This wasn’t an isolated incident. Samba and his crew allegedly arranged for multiple fraudulent loans, including another for Badu himself, flooding the system with forged documents and causing wire communications to crisscross state lines. The total damage? Approximately $547,000 in losses affecting financial institutions in Buffalo and beyond. This wasn’t just about one house; it was a systematic attempt to defraud the system.

Samba isn’t the only one facing consequences. Five co-defendants, including Daniel Badu, have already been convicted and sentenced for their roles in the conspiracy. The investigation, a collaborative effort between the United States Postal Inspection Service, the Department of Housing and Urban Development, and the Federal Bureau of Investigation, sends a clear message: mortgage fraud will be pursued, even if the penalties sometimes appear lenient.

Inspector-in-Charge Joseph W. Cronin of the Postal Inspection Service, Special Agent in Charge Brad Geary of HUD, and Special Agent-in-Charge Stephen Belongia of the FBI all contributed to the investigation. While Samba may have avoided significant jail time, the financial burden of restitution will undoubtedly hang over him for years to come. CONTACT: Barbara Burns (716) 843-5817, (716) 551-3051. # # # #