⏱ 2 min read
A 29-year-old New York man, Mordichai Weiss, has pleaded guilty to participating in a massive scheme to fraudulently obtain over $229.6 million in loans to acquire multifamily and commercial properties in New Jersey and elsewhere. The scheme, which took place between April 2022 and June 2023, involved deceiving lenders into issuing mortgage loans they otherwise would not have approved. Weiss, of Monsey, New York, pleaded guilty in Trenton federal court to one count of wire fraud conspiracy.
Weiss and his co-conspirators orchestrated an elaborate scheme built on falsified records designed to trick lenders into funding loans that never should have been approved. The scheme resulted in tens of millions of dollars in losses to lenders and the public fisc. The case was investigated by the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) and prosecuted by the U.S. Attorney’s Office.
The guilty plea demonstrates the commitment of law enforcement agencies to holding accountable those who exploit the financial system through deception and fraud. Commercial mortgage fraud schemes of this scale undermine the integrity of the lending system and inflict significant losses on financial institutions and taxpayers alike.
The investigation and prosecution of this case are a testament to the partnership between the U.S. Attorney’s Office and the FHFA-OIG to identify, investigate, and prosecute fraudsters who undermine the integrity of the mortgage finance system.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: New Jersey
- Location: NJ
- Source: DOJ Press Release
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