Angelo Loissaint, Jennifer Johnson Plead Guilty in $1.2M Mortgage Scam

A $1.2 million mortgage fraud scheme targeting Flaherty Funding, a Rochester-based lending company, has landed two New York residents in federal court. Angelo Loissaint, 42, and Jennifer Johnson, 41, both of West Babylon, NY, pleaded guilty to conspiring to commit mail and wire fraud, admitting their roles in a calculated scam built on lies, fake documents, and straw buyers.

The scheme, orchestrated by Loissaint and Johnson alongside a third individual facing pending charges, involved the creation of fraudulent mortgage applications submitted to Flaherty Funding. Using fabricated income statements, employment records, and borrower identities, the defendants manipulated the lending process to siphon off nearly $1.2 million in approved loans. Another $900,000 in requested loans failed to close, narrowly avoiding even greater losses.

Assistant U.S. Attorney John J. Field, prosecuting the case, detailed how the pair worked in tandem to fabricate entire financial profiles for individuals who never intended to live in or repay loans for the properties. These straw buyers were mere shells, used to bypass underwriting standards and exploit vulnerabilities in the mortgage approval pipeline.

Acting U.S. Attorney James P. Kennedy, Jr. emphasized that financial institutions and taxpayers ultimately bear the cost of such fraud. “This was not a victimless crime,” Kennedy stated. “Loissaint and Johnson undermined the integrity of the lending system for personal gain, and they will now face the consequences.”

U.S. District Judge Elizabeth A. Wolford accepted the guilty pleas and scheduled sentencing for July 12, 2017, at 2:00 p.m. Both defendants face significant prison time, restitution, and federal penalties tied to the wire and mail fraud charges, which carry maximum penalties of 20 years per count.

The investigation was led by the United States Postal Inspection Service—Boston Division under Inspector-in-Charge Shelly Binkowski, with support from the New York Division—and the Federal Bureau of Investigation, directed by Special Agent-in-Charge Adam S. Cohen. Authorities say today’s convictions signal ongoing vigilance against financial fraud networks operating across state lines.