WASHINGTON – A settlement agent has been found guilty by a jury of 10 counts of conspiracy, bank fraud, and mail fraud stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland. Edward Dacy, 76, most recently of West Melbourne, Fla., was found guilty by a jury on March 25, 2015.
The verdict followed a trial in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton scheduled sentencing for June 19, 2015. This completes a three-year investigation relating to this mortgage fraud scheme. A total of nine individuals have admitted their guilt through guilty pleas or were found guilty after trial.
“Mortgage fraud victimizes innocent homeowners and weakens our economic future,” said Acting U.S. Attorney Vincent H. Cohen, Jr. “This settlement agent was supposed to be a check on mortgage fraud, but he instead joined this multi-million dollar rip-off scheme. This guilty verdict demonstrates our commitment to bringing justice to the fraudsters who fall lure to the promise of easy money and in the process harm innocent people and businesses.”
“Edward Dacy is a prime example of a real estate professional who believes that he can act above the law, regardless of what loss that causes to others,” said Special Agent in Charge Olga Acevedo. “However, justice has prevailed, and Dacy has appropriately been found guilty. Our office is committed to ferreting out mortgage fraud directed at Fannie Mae and Freddie Mac, which subsequently impacts every American taxpayer.”
The government’s evidence at trial included testimony from conspirators who were involved in the scheme to defraud banks, mortgage lenders, and the Federal Housing Administration, “FHA,” (part of U.S. Department of Housing and Urban Development) of money by obtaining mortgage loans on residential real estate properties through false loan applications and documents and fraudulent settlements, and ultimately causing a loss to the banks, lenders, and FHA when mortgages were not paid. Some of the fraudulently-obtained mortgage loans were later resold in the secondary mortgage market to Freddie Mac and Fannie Mae.
The trial evidence included information about conspirators who purchased properties in the names of general partnerships. They then resold the properties at inflated prices, using the proceeds to fund their own lifestyles and line the pockets of their co-conspirators. The scheme was sophisticated and far-reaching, involving numerous accomplices and causing significant financial losses to the victims.
The guilty verdict against Edward Dacy sends a strong message to the real estate and mortgage business community that law enforcement is united in our efforts to investigate those who bilk financial institutions out of millions of dollars, said Assistant Director in Charge Andrew G. McCabe. By joining in the scheme to defraud, which involved false loan applications, forged documents and fraudulent statements, Mr. Dacy took advantage of mortgage lenders and banks by falsely leading them to believe that they were supporting homeownership.
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Key Facts
- State: Washington DC
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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