Michigan Man Sentenced to Two Years for Defrauding JPMorgan Chase – NMP Skip to main content

Michigan Man Sentenced to Two Years for Defrauding JPMorgan Chase

National Mortgage Professional
Apr 18, 2014

Firas “Russ” Bachi of Waterford Township, Mich. was sentenced to two years in prison and two years of supervised release for defrauding a bank in connection with 10 mortgage loans, United States Attorney Barbara L. McQuade announced. McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division, and Jeffrey Frost, Special Agent in Charge of the Detroit office of the U.S. Secret Service. In addition, United States District Judge Bernard A. Friedman ordered Bachi to pay restitution to JPMorgan Chase Bank in the amount of $885,000. Bachi pleaded guilty to one count of bank fraud in October 2013. According to court records, Bachi was a mortgage broker based in Farmington Hills who did business under the name First Choice Finance. In 2007, he acquired distressed residential properties in the city of Detroit and placed them in the names of straw sellers. Bachi then caused the appraisals of the properties to be inflated and sold the properties to straw buyers. The sales to the straw buyers were funded by mortgage loans made by Washington Mutual Bank (subsequently acquired by JPMorgan Chase Bank) based on loan applications that inflated the incomes and assets of the straw buyers and misrepresented the source of the downpayments. The loans went into default, and the houses were foreclosed on. The investigation of this case was conducted by special agents of the FBI and the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Published
Apr 18, 2014
CFPB Alters Threshold For Exempting Loans From Special Appraisal Requirements

The 2022 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $27,200 to $28,500. 

Regulation and Compliance
Dec 02, 2021
Regulatory Review, Reformatted

The progress made to date with NMLS modernization

Regulation and Compliance
Dec 01, 2021
November Surprise: Fed May Accelerate Tapering

Chairman Powell tells Congress of concerns about inflation, COVID-19 variant’s effect on recovery.

Regulation and Compliance
Dec 01, 2021
FHFA's 2022 Conforming Loan Limit Maxes Out At Nearly $1M

Baseline limit for Fannie, Freddie increases to $647,200, but for 'high-cost areas' loan ceiling set at $970,800 for single-family homes.

Regulation and Compliance
Dec 01, 2021
Regulators Are Back In The Saddle

There’s not only a new sherriff in town, it’s a whole gang of them.

Regulation and Compliance
Nov 29, 2021
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021