Ten Indicted in Pennsylvania Mortgage Fraud

Allison Tussey —  July 27, 2006 — 9 Comments

In Pennsylvania, ten individuals were charged in an 18-count indictment with a massive mortgage and identity fraud scheme. The fraud involved nearly 180 properties in Philadelphia, Pennsylvania, the vast majority of which will fall into foreclosure. The government and private mortgage lenders are at risk of losing over $11,000,000 because of the fraud.

Accused in the recently unsealed indictment of participating in the scheme were:

Vincent Sirolli, 64, Deptford, New Jersey

Mahn Huu “Bruce” Doan, 38, Philadelphia, Pennsylvania

Ciriaco Gatta, 43, Philadelphia, Pennsylvania

Anthony Giampietro, 52, Cherry Hill, New Jersey

Mary Diantonio, 49, Sicklerville, New Jersey

Dana Siciliano, 44, Philadelphia, Pennsylvania

June Kodiak, 57, Bensalem, Pennsylvania

Keith Lyon, 43, Jackson, New Jersey

Trung Tam Dang, 36, Philadelphia, Pennsylvania

Zu-Yun “Andy” Kim, 27, Media, Pennsylvania

According to authorities, self-described real estate investor, Mahn Huu Doan, a/k/a “Bruce Doan,” hit on a scheme to try to make money. He and his associates would purchase houses using false or borrowed identities. Doan managed to buy these houses with government insured loans. With the help of Trung Tam Dang, Doan made up false paper work – including false bank records, false W-2 forms, and false pay stubs – which he used to apply for these mortgages. Most of the mortgages came from a company called Encore Mortgage Services, Inc., which was owned by Vincent Sirolli. Participating in and profiting from the fraud, Sirolli and his employees – Dana Siciliano, a loan officer; June Kodiak, a loan originator; and Keith Lyon, the company’s Chief Operating Officer – processed the applications and got Doan the money he needed. The scheme worked, in part, because Ciriaco Gatta, a/k/a “Jack Gatta,” an appraiser (C.A. Gatta & Associates, 2525 South Broad Street, 2nd Floor, Philadelphia, Pennsylvania), fraudulently inflated the appraisals on the houses. Those fraudulent appraisals allowed Doan, Sirolli, and the others to wring excess profits from the deals, profits the schemers used to keep the fraud going and to line their own pockets. At the closings on the deals, settlement agents Mary Diantonio (Rittenhouse Abstract and First City Abstract Agency, Inc., 1429 Walnut Street, 6th Floor, Philadelphia, Pennsylvania) and Anthony Giampietro (Rittenhouse Abstract, Inc., 2617 South 21st Street, Philadelphia, Pennsylvania) prepared paperwork that falsely described the flow of money in the deals, thereby hiding the fraud from mortgage lenders and the government. Zu-Yun Kim, a/k/a “Andy Kim,” an associate of Doan’s, often posed as a buyer or seller at the closings, signing paper work using a false identity.

The defendants planned to hold on to the houses they purchased for a short time, and then re-sell or “flip” them for a profit. They were unable. Still, they had to pay the mortgages on the houses. They failed. As a result, nearly all of the houses will go into foreclosure.

“Foreclosures affect everyone in Philadelphia,” United States Attorney Pat Meehan stated. “A recent study by The Reinvestment Fund estimates that, for every foreclosure within a block of your house and within a year, your house will lose 1% of its value.” Meehan went on, “You can therefore imagine the impact that 180 foreclosures will have on our neighborhoods. If we are to keep our neighborhoods intact, we must stop the kind of fraud that happened here.”

If convicted the defendants face maximum possible sentences of:

Vincent Sirolli, 82 years imprisonment, 3 years of supervised release, and a $1,500,000 fine;

Bruce Doan, 42 years imprisonment, 3 years of supervised release, and a $1,000,000 fine;

Jack Gatta, 27 years imprisonment, 3 years of supervised release, and a $750,000 fine;

Anthony Giampietro, 82 years imprisonment, 3 years of supervised release, and a $1,500,000 fine;

Mary DiAntonio, 2 years imprisonment, 1 year of supervised release, and a $250,000 fine;

Dana Siciliano, 42 years imprisonment, 3 years of supervised release, and a $1,000,000 fine;

June Kodiak, 42 years imprisonment, 3 years of supervised release, and a $1,000,000 fine;

Keith Lyon, 42 years imprisonment, 3 years of supervised release, and a $1,000,000 fine;

Trung Tam Dang, 42 years imprisonment, 3 years of supervised release, and a $1,000,000 fine;

Andy Kim, 42 years imprisonment, 3 years of supervised release, and a $1,000,000 fine.

Properties in the indictment include:

2508 S.2nd Street, Philadelphia, Pennsylvania

6356 Kingsessing Avenue, Philadelphia, Pennsylvania

1027 S.10th Street, Philadelphia, Pennsylvania

6831 Regent Street, Philadelphia, Pennsylvania

1118 S. Alder Street, Philadelphia, Pennsylvania

2312 Belgrade Street, Philadelphia, Pennsylvania

1215 S. 8th Street, Philadelphia, Pennsylvania

1235 S. 8th Street, Philadelphia, Pennsylvania

5930 N. 4th Street, Philadelphia, Pennsylvania

6135 Reedland Street, Philadelphia, Pennsylvania

634 Tasker Street, Philadelphia, Pennsylvania

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9 responses to Ten Indicted in Pennsylvania Mortgage Fraud

  1. do you think these people will get time in prison

  2. I do not have a comment but I do have a question. What happens to the Title Agencies that the settlement people worked for? Do they or their owner(s) have any legal responsibility to fraudulent acts? I have read of repeated malpractice issues over the years and oftentimes the same agencies are involved. Yet the owner(s) appear to walk away unscathed. How can the same types of events occur more than once with the same agencies and yet the owner(s) know absolutely nothing? I just find that so hard to believe.

    Thank you.

  3. Has this case come to a close.
    if so what was the verdict

  4. what was the sentencing for the kodiak and siciliano?

  5. Has this case gone to trial? What sentence did Mary Diantonio recieve? And when does it begin and end? Is this a Federal or State offense?

    • Mary received nothing. She was a pawn in the whole scheme and the government knew this. She was the only one not receive a prison sentence. And I agree as to what happened to the owners of Rittenhouse Abstract and DiGennaro Real Estate. Nothing !! With the owner of Digennaro real estate also being the owner of Rittenhouse Abstract. No justice there.

      • A pawn, that’s funny. She cooperated that’s why she got no time. She received $1000′s and knew exactly what she was doing. She was low enough in the scheme for the gov’t to justify letting her off and she had a lot more information to offer that wasn’t directly about the case. Wake up, the government does whatever it wants and that includes letting guilty people skate.

  6. It seems to me like the innocent party in the matter would be the owner of the company, as he was merely the owner of the mortgage company. If ANYONE knows anything about mortgage companies, they know that clearly the owners employ trust-worthy individuals to process loans. It seems the biggest people involved here were everyone else, yet the owner of the company seems to be unfairly faced with the highest charges. I know that everyone will say that he should put his eyes on every loan going out the door, however, does the owner of Coca-Cola put his eyes on every bottle of Coke leaving the production line? No. He hires, what he thinks, to be trust-worthy employees to handle that for him. If anything, the owner, at the time probably thought that his employees were really doing a great job and working hard, because this occurred at a time when EVERYONE was buying. In my opinion, the owner should be the only party not in trouble here. All he is guilty of is making money in his business. It seems he didn’t know there was a scheme brewing right under his nose.

  7. It seems to me that BeBe has no idea what she is saying. Why wouldn’t the owner’s of the company recieve the biggest penalty, and why shouldn’t they? Do your homework, if you followed the case you would understand that when the owner of Encore mortage found out about the fraudulant scheme he devised and instructed those employees that he hired how to maintain the scheme so his business could keep gaining revenue from the 180 properties that were in question. All business owner’s are liable for the actions of their employees and anything that that business generates, when they were approached or found out about the scheme they could have walked right into the FBI office to report it; instead they held meetings directing said employees on how the scheme was to be handled to avoid detection. Plain and simple they wanted the money. If you are going to make a comment make sure you do your homework and know what you are saying because you really sound dumb. Dumb people really make me mad especially if they are dumb and related to you; this is nothing but a pety cry for moral support; there is none for you. So BeBe while all is finalized and finished, I understand you will not have to google to find out the outcome, but for everyone else that thinks this post holds any weight I urge you to put the defendants names simply in google for the entire version; this is only a blog, do your homework if you are interested. And YES the business owners should do the most time as well as pay the highest fine; they in effect are the reason the scheme was allowed to continue and/or happen in the first place; owners are the most liable for making sure that every employee follow rules and regulations of the business. If they were so concerned as I said they could have reported the fraudulant activity instead of brainstorming and recruiting others (i.e. Kieth Lyon, CEO of Encore) to join in the scheme as to insure the fraud was hidden and instruct other employees on how to continue to flourish in the scheme; they are the most accountable as some of these people simply needed to comply to ensure they kept their job with the business owners’ company. If you are who I think you are, you are so pathetic and no one should show you any pity; you do not deserve it. Again if you are reading this I urge you to google and read the court documentation that is now available. It is the business owners’ fault; they did not fire, they did not report the fraud, instead they enabled it. Those who live in glass houses should not throw stones. And let he without sin be the one to cast the first. BeBe and anyone who agrees with her go get yourself a clue.

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