Pittsburgh’s Moreno Convicted in Mortgage Fraud Plot

PITTSBURGH – A federal jury has found Jason Moreno guilty of wire fraud conspiracy and five counts of wire fraud, after a grueling six-hour deliberation. United States Attorney David J. Hickton announced the verdict today.

Moreno, 30, was tried before United States District Judge Nora Barry Fischer for his role in orchestrating fraudulent appraisals through Platinum Appraisal Services. These fake appraisals were integral to two separate mortgage fraud schemes, according to Assistant U.S. Attorney Brendan T. Conway.

The jury heard evidence that the appraisals, supposedly prepared by licensed appraiser Joel Reck, were actually created by Moreno and his accomplices without proper licenses. The appraisals exaggerated property conditions, falsely claimed improvements, and misrepresented comparable property values to inflate loan collateral values significantly higher than actual worth.

Robert Arakelian, a mortgage broker, was one of Moreno’s primary customers, using the fraudulent appraisals to falsely represent substantial down payments to lenders when borrowers were actually receiving money back. This enabled loans that exceeded 150-200% of property value. James Platts, another client, used similar methods but targeted unsophisticated first-time buyers in poor financial condition.

While the lenders believed they were lending between 80-90% of the property values, they were actually financing up to twice the amount. The schemes not only defrauded lenders and borrowers but also undermined the real estate market’s integrity.

United States District Judge Nora Barry Fischer will sentence Moreno at a later date. This conviction marks another victory in the ongoing battle against mortgage fraud in the Pittsburgh area.