Grimy Times Exclusive: Mortgage Fraud Scheme Exposed in Rhode Island
A New Jersey man, Hasan Hussain, 57, of Princeton, N.J., has pleaded guilty to charges related to an extensive mortgage fraud scheme in Rhode Island. Hussain, who was previously convicted in federal court in Massachusetts, admitted to conspiring to defraud financially distressed homeowners, investors, and financial institutions out of fees, rental income, mortgage payment funds, property ownership, and proceeds from the sale of their properties.
As part of the plea agreement, Hussain admitted to using various business entities to trick distressed property owners, who were seeking loan modifications, into paying him fees, moving out of their homes, and selling their homes in short sale transactions. He also admitted to convincing lenders to agree to artificially low sale prices for the distressed property owners’ homes by directing other individuals to damage the properties prior to the short sales.
Hussain further admitted that he assisted investors to acquire federally backed mortgages through fraudulent applications, ultimately resulting in losses to the lenders or the Federal Housing Administration. The scheme resulted in losses between $550,000 and $1.5 million dollars, with ten or more victims harmed.
The United States Attorney, Stephen G. Dambruch, announced the guilty plea, along with other law enforcement officials, including Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General.
Hussain faces up to 32 years in federal prison, 5 years of supervised release, and a fine of $1,250,000 at sentencing on January 8, 2018. A co-defendant, Ricardo Abreu, who pled guilty earlier this year, is scheduled to be sentenced on October 30, 2018.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Richard B. Myrus, and William J. Ferland. Grimy Times will continue to follow this case and provide updates as more information becomes available.
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Key Facts
- State: Rhode Island
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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