Skip to main content

Guilty plea entered in Pennsylvania mortgage fraud scheme

NationalMortgageProfessional.com
Aug 17, 2010

Acting United States Attorney Robert S. Cessar has announced that Ralph Esposito, a resident of Beaver, Pa., has pleaded guilty in federal court to a charge of mail fraud and wire fraud conspiracy. Esposito pleaded guilty to one count before United States District Judge David S. Cercone. In connection with the guilty plea, Assistant United States Attorney Brendan T. Conway advised the court that Esposito participated in a mortgage fraud scheme with several other individuals associated with Beaver Financial Services. As part of the conspiracy, Beaver Financial Services submitted loan applications on behalf of individuals and corporations that overstated the financial position of the borrowers, mainly related to the borrowers' income and assets. Individuals associated with the conspiracy also submitted fraudulent documents to the lenders that supported the fraudulent representations. In addition, the mortgage fraud scheme included the submission to lenders of appraisals that overstated the true fair market values of the properties serving as collateral for the loans. The settlement statements associated with the loans were also fraudulent in that they reflected that the borrowers were making substantial down payments associated with the purchase of real estate and that liabilities associated with the collateral were being paid, when, in fact, the borrowers were often not making down payments and the liabilities associated with the collateral were often not being paid. Esposito participated in the conspiracy mainly as a purchaser of real estate. The real estate was often purchased in the name of SPO Capitol, a corporate entity with which he was associated. Judge Cercone scheduled sentencing for Dec. 10, 2010. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant. For more information, visit http://pittsburgh.fbi.gov.
Published
Aug 17, 2010
CFPB Names 4 To Key Senior Positions

The appointees include two who helped create the bureau and two who served on the CFPB staff during the Obama administration.

Regulation and Compliance
Oct 14, 2021
FHFA Raises Enterprises' Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA) said the 2022 multifamily loan purchase caps will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market.

Regulation and Compliance
Oct 13, 2021
CFPB Hits AAG With Complaint For Deceptive Marketing Of Reverse Mortgages

The Consumer Financial Protection Bureau filed a complaint and proposed consent order, which alleges that American Advisors Group (AAG) used inflated and deceptive home estimates to attract reverse mortgage consumers.

Regulation and Compliance
Oct 12, 2021
Waterstone Mortgage Names VP Of Compliance

Waterstone Mortgage Corporation named Kris Barros as the company's vice president of compliance.

Community
Oct 08, 2021
Battling The ‘Giant Purple Snorklewacker’

The confirmation of Rohit Chopra as CFPB director has the mortgage industry anxious, but former MBA CEO David Stevens offers some advice: follow the rules.

Regulation and Compliance
Oct 08, 2021
The Compliance Contradiction

Staunch compliance stances often lead to contradictory actions.

Regulation and Compliance
Oct 06, 2021