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Defendants in Mortgage Origination Fraud Scheme Indicted
A shocking mortgage origination fraud scheme has led to the indictment of seven defendants in Michigan. The Justice Department announced that Peter Allen, Suhail Hallak, Al Karana, Joey Murad, Jason Najor, Jeffrey Najor, and Wasseem Shamoun have been charged with various crimes related to the scheme.
According to the indictment, the defendants conspired to defraud lending institutions by obtaining mortgage loans using fraudulent information. The scheme, which operated in Detroit from January 2006 to December 2008, involved purchasing property for approximately $5,000 to $40,000 per home and recruiting straw buyers to submit fraudulent loan applications for home mortgages in exchange for a fee.
The indictment alleges that the scheme caused financial institutions to pay approximately $10 million in fraudulent mortgage loan funds. In addition to the conspiracy charge, Hallak, Karana, Jason Najor, Jeffrey Najor, and Shamoun are charged with 20 counts of bank fraud, Murad is charged with seven counts of bank fraud, and Allen is charged with two counts of bank fraud.
Jeffrey Najor is also charged with two counts of assisting in the filing of false tax returns, in connection with his filings on behalf of J.A. Najor Corporation, as well as one count of bankruptcy fraud. If convicted of the conspiracy charge, the defendants face up to 30 years in prison and a $1 million fine. Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, and the FBI and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty.
Key Facts
- State: Michigan
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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