Edward DeFrancesco, Sr., Highland Lakes, New Jersey, and Glenn Allyn, Elmsford, New York, are accused of swindling a distressed Tomkins Cove, New York, homeowner on the verge of foreclosure. DeFrancesco is charged with one count of Grand Larceny in the Second Degree, a class “C” Felony. Ally is charged with one count of Grand Larceny in the Third Degree, a class “D” Felony.
DeFrancesco was involved with a company that helped Rockland, New York, homeowners avoid foreclosure. Instead of helping a Tomkins Cove resident save their home, the defendant purchased the distressed house from the victim and fraudulently applied for a mortgage by misprepresenting the actual purchase price of the residence by over $160,000. By misrepresenting the true sale price of the house, DeFrancesco was able to obtain a loan for more money from the bank than he should have been able to.
Allyn was an attorney involved with a company that helped Rockland homeowners avoid foreclosure. At the real estate closing of the victim, Allyn, who was supposed to be representing the bank, stole a $5,000 check that he was not entitled to, and that should have gone to the seller of the home. The defendant has since been disbarred for unrelated matters.
Rockland County District Attorney Thomas P. Zugibe and New York State Banking Department Superintendent Richard H. Neiman announced the arrest.
District Attorney Zugibe said, “This Office will not allow vulnerable homeowners to become easy prey for financial opportunists and scam artists. By prosecuting these predators and educating the public, we are holding offenders accountable and empowering residents.”
Superintendent of Banks Neiman said, “This case exemplifies one of the worst types of mortgage fraud: under the guise of helping a distressed homeowner avoid foreclosure, these defendants took advantage of him for their own financial gain. The Banking Department is actively addressing these types of mortgage fraud on multiple fronts – by seeking legislative reform, engaging in aggressive regulatory scrutiny and seeking criminal prosecutions. The Department, through its Criminal Investigations Bureau, is committed to assisting local law enforcement agencies pursue those individuals that seek to take advantage of people in economic peril.”
Said Zugibe, “Mortgage fraud destroys families, devastates our communities and undermines our financial institutions. We will make certain that at-risk homeowners desperate for relief from their financial situation are not targeted in these difficult times. My Office, in partnership with the Banking Department, will use every tool available to investigate, prosecute and prevent such criminal activity.”
The arrests of both defendants resulted from an investigation conducted by the Rockland County Special Investigations Unit and the New York State Banking Department’s Criminal Investigations Bureau.
DeFrancesco was arraigned in the Town of Stony Point Justice Court by the Honorable Frank Phillips. If convicted, he faces 15 years in state prison.
Allyn was arraigned in the Town of Stony Point Justice Court by the Honorable Frank Phillips. In addition, he was ordered to surrender his pistol and permit. If convicted, Allyn faces seven years in state prison.
Both defendants are prohibited from working in the mortgage industry.