Real Estate Fraudster Jailed for Rent-to-Own Scam

admin —  May 20, 2013 — Leave a comment

Robert Coyle, Sr., 68, Glassboro, New Jersey, was sentenced to 72 months in prison for a loan fraud scheme that attempted to swindle more than $10 million from three banks. He pleaded guilty to two counts of loan fraud on October 1, 2012.

Coyle owned and/or rented more than 300 properties in Philadelphia, Pennsylvania and operated several real estate business, Landvest, LLP; Alivest, LLP; and Otay, LLC, to name a few. Through those business entities, Coyle borrowed more than $3 million from East River Bank (ERB) and more than $6.6 million from Republic First Bank (RFB). Polonia Bank was a 49 percent participant in the ERB loans after settlement. The purpose of the loans was purportedly to refinance existing loans, make improvements on some of the properties Coyle owned, and/or to allow Coyle to pursue other real estate opportunities.

Coyle pledged approximately 71 properties to secure the ERB loans and approximately 117 other properties to secure the RFB loan. The banks anticipated that the loans would be repaid through rental income that Coyle was collecting and, if necessary, through the sale of the collateral properties. But Coyle had entered into various ownership agreements, including rent-to-own, with the occupants of several of the properties and he, therefore, did not hold good title for all of the properties he pledged. The loans that were submitted totaled more than $10 million.

In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered restitution in the amount of $6,480,302.65, five years of supervised release, a $200 special assessment, and a forfeiture money judgment of $10,106,200. The restitution amount includes individuals who had entered into rent-to-own, house swap, or similar ownership agreements with the defendant, or any entity controlled by the defendant, for properties that were pledged as collateral.

The case was investigated by the Federal Bureau of Investigation and the Economic and Cyber Crimes Unit of the Philadelphia District Attorney’s Office. It was prosecuted by Assistant United States Attorney Mary Kay Costello.

 

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