BOSTON – After seven years on the run, hiding in Ireland, Patrick Lee, 44, a dual U.S.-Irish citizen, is back in Massachusetts to answer for a brazen mortgage fraud scheme that helped fuel the housing bubble’s collapse. Lee arrived in federal custody late yesterday, marking Ireland’s first extradition to the United States since 2012 – a testament to the relentless pursuit by federal investigators.
The indictment, originally filed in 2011, paints a picture of systematic deception. From 2005 to 2007, Lee and his associates allegedly targeted properties in Dorchester and South Boston, flipping them into condominiums using a network of straw buyers. These buyers, paid for their participation, had no intention of actually living in the properties, a key component of the scheme. Lee allegedly recruited these individuals to sign documents they didn’t understand.
But the fraud didn’t stop there. Lee, despite lacking the necessary license, allegedly crafted fraudulent appraisals, forging the name and license number of a legitimate appraiser to inflate property values. He also colluded with real estate attorneys to push through closings using falsified documents, sending the doctored loan applications to unsuspecting mortgage lenders. These lenders, operating under false pretenses, funded loans that were destined to fail.
The scheme allowed Lee and his co-conspirators to pocket the loan proceeds while the straw buyers were left holding the bag – and ultimately, facing foreclosure. The indictment details how Lee manipulated closing documents to secure a larger share of the profits than he was entitled to, further enriching himself at the expense of lenders and the housing market. The fallout? Lenders lost millions, and the properties were abandoned.
Lee now faces 29 counts of wire fraud, six counts of unlawful monetary transactions, and 16 counts of aggravated identity theft. If convicted, he could face up to 30 years in prison on some of the wire fraud counts, along with significant fines. The aggravated identity theft charge carries a mandatory two-year sentence. Sentencing will be determined by a federal judge based on U.S. Sentencing Guidelines and other factors.
The investigation was a joint effort led by Acting United States Attorney William D. Weinreb, the IRS Criminal Investigations, the U.S. Secret Service Boston Field Office (Special Agent in Charge Stephen A. Marks), and the U.S. Marshals Service (John Gibbons). The Department of Justice’s Office of International Affairs played a crucial role in securing Lee’s extradition. Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers are prosecuting the case. It is important to remember that the charges are allegations, and Lee is presumed innocent until proven guilty.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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