Sam Hilany, a.k.a. Nahum Hilany, 35, West Hempstead, New York, pled guilty to Attempted Grand Larceny in the First Degree and Scheme to Defraud in the First Degree in connection with allegations that he participated in a $3M identity theft and mortgage fraud scheme. Hilany was originally indicted in June 2004 along with six other individuals in connection with allegations that they engaged in a scheme to obtain fraudulent mortgages for nine properties (most located in Brooklyn) through the use of stolen identities, straw buyers and inflated appraisals. His former co-defendants have all pleaded guity to various charges.
Hilany will be sentenced on September 19, 2005 and faces up to 6 years in prison. In addition, he will be required to pay restitution of $3,136,800.
According to Nassau County District Attorney Denis Dillon:
"Hilany was the principal architect behind a large identity theft and mortgage fraud scheme that was brought to light after an investigation by our Criminal Frauds Bureau. He stole $3,136,800 in a scheme that included real estate investors, an attorney, a title closer and an appraiser. This elaborate identity theft and mortgage fraud scheme involved stolen identities, paid ‘straw borrowers,’ falsified employment, income and asset information, and false property appraisals.
In one incident, by erecting a street level facade at the site of a structure that had been destroyed by fire, the defendants were able to obtain a $324,000 mortgage on a building that was merely a burnt out shell.
Hilany was both the purchaser and seller of most of the properties in the scheme, and he was the principal beneficiary of the proceeds from these transactions. The companies in whose names the properties were bought and sold were in fact corporate names used by Hilany. It was Hilany who found the properties, did the contracts, arranged for the falsified appraisals, and set up the closing dates.
In June of 2004, Hilany was officially charged by my office. At the time the charges had been filed Hilany had already fled the jurisdiction. We then notified the International Alert System that Hilany was a wanted fugitive. Based upon the entry of that alert, on October 19, 2004, our office and the task force were notified by Homeland Security that Hilany was listed as a passenger on Lufthansa Flight 498 from Frankfurt, Germany due to arrive at 5:21 p.m. Mexico City, Mexico.
Coordination between the task force, Interpol and Mexican immigration was initiated, and the intent was to have Mexico expel Hilany to the United States, as he is a U.S. citizen. At 10:40 p.m. our office and the task force was notified that expulsion of Hilany from Mexico to the United States had failed. However, Hilany was placed on Lufthansa Flight 499 departing at 8:45 p.m. from Mexico City back to Frankfurt, Germany.
Immediately, a second coordination began this time with the German Authorities to detain Hilany upon his arrival in Frankfurt, Germany. Under tremendous time constraints, our office and the Fugitive Task Force put together the necessary paperwork in order for German authorities to take Hilany into custody. Upon exiting the plane in Frankfurt, Germany, on October 20, 2004, Hilany was taken into custody by the German Border Police. He was subsequently remanded pending extradition hearings. On December 29, 2004, Hilany waived extradition and was cleared for deportation. He was brought back to Nassau County to face the charges on January 28, 2005."
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.