Buffalo, NY – In a shocking case of mortgage fraud, Gregory Gibbons, a 51-year-old mortgage broker from Pleasantville, NY, pleaded guilty to conspiracy to commit wire fraud affecting a financial institution on February 2009. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Gibbons, along with co-conspirators Alagi Samba, a realtor, and Daniel Badu, devised a scheme to obtain eight loans for unqualified borrowers for homes in the Bronx, NY. As part of the scheme, Gibbons altered income and asset documents of the borrowers before they were sent to financial institutions.
The investigation revealed that Gibbons created false loan documents to make it appear that Badu qualified for a mortgage on a property at 814 Faile Street in the Bronx. He claimed that Badu was a research ophthalmologist and earned a specific income when in fact, Badu was not a research ophthalmologist nor did he receive the income stated on a loan application.
Gibbons’ scheme caused losses of approximately $4,800,007 affecting M&T Bank and other financial institutions including SunTrust Bank, JPMorgan Chase Bank, and Citibank. The defendant and his co-conspirators arranged for additional fraudulent loans to be approved, including another loan for Badu, and caused wire communications to be transmitted in interstate commerce for those loans.
Defendants Badu and Samba have also been convicted and are awaiting sentencing. Charges are pending against co-defendants Julio Rodriguez, Laurence Savedoff, and Tina Brown. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the United States Postal Inspection Service, the Department of Housing and Urban Development, and the Federal Bureau of Investigation. Sentencing for defendant Gibbons is scheduled for October 19, 2017, at 2:00 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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