Christopher Fekos, 48, McMurray, Pennsylvania and Joseph Howcroft, 26, Pittsburgh, Pennsylvania, were indicted by a federal grand jury in Pittsburgh, Pennsylvania on fifteen counts of Conspiracy, Bank Fraud, Mail Fraud, Bribery of a Bank Employee, Uttering and Possessing Forged Securities of an Organization Involved in Interstate Commerce, and Money Laundering.
According to the indictment presented to the Court, Fekos and Howcroft were involved in several fraudulent schemes. The Indictment alleges that Fekos applied for numerous loans from a variety of lending institutions, and that he made several misrepresentations and presented fraudulent documents in connection with those loans, including fraudulent tax returns, letters, and other documents. Loans were alleged to have been obtained from Household Finance, Countrywide Home Loans, Equity One, Fidelity First Lending, Alliance Funding, Interbay Funding, CitiFinancial, Aegis Mortgage, Centex Home Equity, Statesman Mortgage, Bank Pittsburgh, Allied Mortgage Group, Inc. Some of the loans were allegedly obtained in the name of Fekos Enterprises Real Estate.
The Indictment also alleges that Fekos participated in a scheme in which he submitted false insurance claims, and made fraudulent purchases with his American Express card. The Indictment further alleges that both Fekos and Howcroft participated in a scheme to defraud Citizens Bank by submitting fraudulent documents, bribing a bank employee, and by accepting forged checks.
If convicted of all charges, the law provides for a maximum total sentence of 165 years in prison, a fine of $5,500,000, or both for Fekos, and 85 years in prison, a fine of $2,500,000, or both for Howcroft.
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.