Maggio Faces 30 year sentence
William O’Keefe was charged by information and plead guilty on September 23, 2005 to one count of bank fraud in connection with his role in a mortgage flipping scheme that operated in the Rochester, New York area.
He faces a maximum sentence of 30 years in prison along with a fine of $1,000,000. The plea agreement also states that the court must require restitution of $243,181 to be paid as part of the sentence.
According to an Affidavit in Support of a Criminal Complaint executed by FBI Special Agent Paul D. Bernreuther, filed July 1, 2005:
On February 9, 1999 O’Keefe purchased a home at 67 Waverly Place, Rochester, New York from Theodore Antonucci, Jr. for $58,000, obtaining a $57,525 HUD mortgage from Standard Federal Bank. O’Keefe later defaulted on the mortgage. O’Keefe submitted false documents to the lender to obtain the loan including a 1996 and 1997 federal tax returns (with reported earnings of $31,200 and $35,750 respectively); a loan application reflecting $4,117 per month in employment income; a VOE from W.J. Grinder showing earnings for 1998 ($43,700), 1997 ($35,750) and 1996 ($31,200) and earnings statements from W.J. Grinder Roofing Co., Inc. indicating November 1998 gross income of $950 per week. According to court documents, the investigation disclosed that per the IRS, O’Keefe did not file tax returns with the IRS for 1996 through 2002, per the New York Department of Labor, W.J. Grinder Roofing Co., Inc had no employees from 1998 through January 2005 and that per an interview with O’Keefe, money earned by O’Keefe from Grinder Roofing was paid in cash and O’Keefe never filed tax returns with respect to those earnings.
Antonucci is reported to be currently serving a prison sentence for assaulting a police officer. He has not been charged in connection with this case but media reports indicate that he is the center of the investigation. This scheme was first reported in 2002.
An information charging O’Keefe with one count of bank fraud was filed on September 23, 2005 and indicated that the loss to Standard Federal Bank in connection with the fraud described in the Affidavit was $50,425. O’Keefe is scheduled to be sentenced on December 12, 2005.
Joseph Maggio was charged by information and plead guilty on May 10, 2005 to one count of conspiracy to commit bank fraud in connection with the same scheme. The maximum possible sentence was five years in prison and a $250,000 fine. He was sentenced on September 8, 2005 to five years probation and was ordered to pay restitution of $56,899.00. ($44,000 to IndyMac Bank and $12,889 to Wachovia Bank of Delaware.)
According to court documents, Maggio purchased property at 318-230 Brooks Avenue, Rochester, New York from Theodore Antonucci, obtaining a mortgage of $63,000 from Provident Bank. Maggio submitted false documents to obtain the loan including an application that contained false information regarding Maggio‘s income and employment, a false employment verification, false earnings statements, false investment statements and a false W-2. Maggio defaulted on the loan and the total loss exceeded $30,000.