Newark, New Jersey – In a shocking turn of events, two former employees of a New Jersey-based mortgage lending business have been charged with their roles in a large-scale mortgage fraud scheme. Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet A. Elmas, 32, a U.S. citizen who resides in Turkey, are accused of conspiring and engaging in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere.
According to documents filed in this case and statements made in court, Gallo and Elmas used their positions to fraudulently obtain mortgage loans between 2018 and October 2023. They routinely misled mortgage lenders about the intended use of properties to secure lower mortgage interest rates. The pair often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain properties when, in fact, those properties were intended to be used as rental or investment properties.
By fraudulently misleading lenders about the true intended use of the properties, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates. The conspiracy also included falsifying property records, including building safety and financial information of prospective borrowers to facilitate mortgage loan approval.
Gallo originated more than $1.4 billion in loans between 2018 and October 2023. The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest.
Gallo and Elmas appeared before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were each released on $200,000 unsecured bond.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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