Man Indicted for Assisting Borrower to Obtain Fraudulent Loan

Allison Tussey —  June 26, 2013 — Leave a comment

John Nazarian, Saratoga County, New York, has been indicted and charged with aiding and abetting bank fraud for his alleged role in a mortgage fraud scheme.

According to the Indictment, Nazarian, while acting on behalf of First Guarantee Mortgage, a mortgage brokerage headquartered in Saratoga Springs, New York, conceived and executed a scheme and artifice (a) to defraud financial institutions, whose deposits were insured by the Federal Deposit Insurance Corporation, and (b) to obtain moneys and funds owned by or under the custody or control of those financial institutions, by means of materially false or fraudulent pretenses, representations, or promises.

It was part of the scheme and artifice that officers, employees and agents of First Guarantee Mortgage would assist loan applicants in the completion of mortgage loans that were to be funded by or subsequently sold to financial institutions whose deposits were insured by the Federal Deposit Insurance Corporation.  In that capacity, First Guarantee Mortgage entered false and fictitious information on the mortgage loan applications, knowing the information was false and fictitious, in order to qualify the applicants for the mortgage loans, or otherwise to enhance the chances that the mortgage loan applications would be accepted and funded, and intending to defraud the financial institution that ultimately financed or purchased the mortgage loans.

The money, representing mortgage proceeds, obtained as a result of the false and fictitious mortgage applications, was allegedly transferred to an account held by a company associated with First Guarantee Mortgage.

According to the Indictment, Nazarian knowingly and willfully overstated a borrower’s income as part of the application to obtain a mortgage loan from Wilmington Finance.  Wilmington Finance and AIG Federal Savings Bank provided a loan of $144,800 to the borrower based upon the false information provided by the defendant.

Nazarian entered a plea of not guilty to the Indictment.  He was released after posting a $20,000 bond.

 

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