NEWARK, N.J. – A brazen mortgage lending scheme has been exposed in New Jersey, with two former employees at the center of a $1.4 billion scam.
Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet A. Elmas, 32, a U.S. citizen who resides in Turkey, have been charged with one count of conspiracy to commit bank fraud.
According to court documents, Gallo and Elmas used their positions at a New Jersey-based mortgage lending business to conspire and engage in a fraudulent scheme to falsify loan origination documents. They misled mortgage lenders about the intended use of properties to secure lower mortgage interest rates.
The duo routinely 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.
Between 2018 and October 2023, Gallo originated over $1.4 billion in loans. 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.
The investigation leading to the arrests was conducted by the FBI and the Federal Housing Finance Agency, Office of Inspector General. 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.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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