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A Westfield Man Sentenced for His Role in Large-Scale Mortgage Fraud Scheme
A Westfield, New Jersey, man was sentenced to 12 months in prison for his role in a large-scale mortgage fraud scheme in which he obtained more than $1 million in illegitimate proceeds, U.S. Attorney Paul J. Fishman announced.
Defendant Information
Defendant: Amedeo Gaglioti, 60
Criminal Charges: Wire fraud affecting a financial institution and money laundering
City and State: Westfield, New Jersey
Date: Not specified.
Sentence: 12 months in prison, 3 years of supervised release, restitution of $2,001,245.89, and a forfeiture judgment of $1 million
Dollar Amounts: $1 million in illegitimate proceeds and $2,001,245.89 in restitution
The Crime
From December 2007 through August 2010, Amedeo Gaglioti engaged in a scheme to swindle mortgage lenders by causing fake “short sale” transactions and fraudulently obtaining mortgage loans relating to properties primarily located in northern New Jersey. Gaglioti was the closing attorney for these transactions. As part of the scheme, Gaglioti would prepare two sets of false and misleading closing documents, including HUD-1s, for short sale flip transactions. Through the preparation of these documents, as well as other acts, lenders accepted proceeds of purported short sales in full satisfaction of an existing mortgage. Gaglioti also caused lenders to fund mortgages based upon false and misleading information and documentation. Gaglioti obtained more than $1 million in illegitimate proceeds as a result of the scheme.
Investigation
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit. This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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