Attorney Pleads Guilty to Mortgage Fraud

Allison Tussey —  April 18, 2011 — 1 Comment

John Bryk, 61, Trumbull, Connecticut, waived his right to indictment and pleaded guilty before United States District Judge Janet C. Hall in Bridgeport to one count of conspiracy to make a false statement in a Department of Housing and Urban Development transaction.

A U.S. Department of Housing and Urban Development Uniform Settlement Statement (HUD-1) is an official financial statement reflecting how money is to be distributed at real estate closing.

According to court documents and statements made in court, in approximately January 2007, Bryk was retained by Heather Bliss to be her attorney for the purchase of 87 Saugatuck Avenue, Westport, Connecticut. Bryk was informed by Bliss and her husband that the property purchase would be financed by a $350,000 primary mortgage from Argent Mortgages, as well as a seller-financed mortgage for the remainder of the purchase price. Bryk was subsequently informed that Argent Mortgages would not finance the Saugatuck Avenue property purchase if any other loans were taken on the property. However, Bryk was asked to make the deal go through as planned. Bryk then prepared the HUD-1 for the closing on the purchase of 87 Saugatuck Avenue, which falsely indicated that no other loans were used to purchase the property.

Judge Hall has scheduled sentencing for July 1, 2011, at which time Bryk faces a maximum term of imprisonment of five years.

On July 30, 2010, Heather Bliss pleaded guilty to one count of conspiracy to commit wire fraud stemming from her participation in this and other fraudulent mortgage transactions. She awaits sentencing.

The United States Attorney for the District of Connecticut announced the guilty plea.

The case is being prosecuted by Assistant United States Attorney Rahul Kale.

In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation Division; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.

Citizens can report mortgage fraud activity by contacting the Connecticut Mortgage Fraud Task Force at 203-333-3512, or by sending an email to ctmortgagefraud@ic.fbi.gov.

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Allison Tussey

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One response to Attorney Pleads Guilty to Mortgage Fraud

  1. I just heard that 17 lenders were going to have to pay back some of the funds where they did not properly foreclose.This includes penalties. I say it is about time they pay for things they knew were wrong but did not care.also they have talked about dropping the balance. I agree why should someone be upside down 150%. customer ask if he could refi- his balance was 320,000 and the house was worth 150,000. No you cannot refi but mayber your kids can.

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