This isn't the kind of thing we want to hear. The New York Law Journal reports that a paralegal who took part in a multimillion-dollar mortgage fraud and foreclosure scam was sentenced to three years in prison.
Apparently, from 2004 to 2007, the paralegal, 33, and 26 others including mortgage brokers and loan processors at the Brooklyn-based firm AGA Capital NY Inc., prepared and submitted applications with falsified information in order to secure loans in the millions of dollars. This subprime mortgage scam cost lenders roughly $11.6 million.
The paralegal also served as a settlement agent for a foreclosure rescue scheme where distressed homeowners in Brooklyn and the Bronx were induced to "sell" their deeds to innocent straw buyers who would in turn apply for loans and "save" the homes. In the next step, the defendants defaulted causing homeowners to lose title to their property. This left lenders with hundreds of thousands of dollars in unpaid loans.
The paralegal pleaded guilty to two counts of conspiracy to commit mail, wire and bank fraud and was sentenced to two concurrent three-year prison sentences. Judge Richard J. Howlwell of the Southern District of New York directed the paralegal to forfeit $7 million and pay roughly $11.6 million in restitution.
C'mon folks, say it ain't so.