Jury Convicts Two Attorneys Over $25M Mortgage Fraud Scheme

Two New York attorneys were convicted of 10 felony counts for their roles in a $25 million mortgage fraud scheme.

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The ""U.S. Attorney's Office for the Eastern District of New York"":http://www.justice.gov/usao/nye/ announced in a statement Monday that a federal jury in Brooklyn reached a verdict late Sunday, convicting attorneys Matthew Burstein, 40, and Aaron Rabinowitz, 40, of the law firm Burstein & Rabinowitz.

The pair were allegedly involved in a scheme that resulted in over $25 million in fraudulently-obtained loans from Countrywide Financial, Fremont Investment and Loan, IndyMac Bank, Sun Trust Mortgage, Inc., Wells Fargo & Company, and New Century Mortgage Corporation.

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Sentencing is scheduled for November 26, 2012, and the defendants could face up to 30 years in prison for charges related to bank and wire fraud.

According to the statement, evidence from the government established that from January 2006 to September 2008, the defendants worked as attorneys at real estate closings for fraudulent home sales in New York City.

The defendants conspired with real estate agents and loan officers to falsify loan documents in order to obtain mortgage loans for properties located in Queens, Brooklyn, and Long Island.

Many of the properties were purchased by recruited straw buyers, whose failure to make the mortgage payments to the banks led to millions of dollars in defaulted loans.

The defendants turned a profit by paying themselves attorneys' fees from the mortgage loan proceeds.

""The defendants violated the trust placed in them as attorneys and further damaged the integrity of the real estate market,"" said Loretta E. Lynch, U.S. Attorney for the Eastern District of New York. ""We will vigorously investigate and prosecute those who engage in mortgage fraud, including professionals who jettison their responsibility to reap rewards from the fraud.""

Four others were indicted for their roles in the scheme. Real estate agent Elias Compres, loan officers Arturo Giraldo and John Constantanides, and Rolando E. Roldan were charged with conspiracy to commit bank and wire fraud.