Five Residents of the Detroit Sentenced for Mortgage Fraud Scheme

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Mortgage Fraud Scheme

<h1>Michigan Residents Sentenced to Prison for Mortgage Fraud Scheme<&sol;h1>&NewLine;<p><strong><em>Recruited Straw Buyers to Purchase Homes and Submit Fraudulent Mortgage Applications<&sol;em><&sol;strong><&sol;p>&NewLine;<p>Five residents of the Detroit&comma; Michigan&comma; area were sentenced to prison this week for their roles in a multi-year mortgage fraud conspiracy&comma; Acting Assistant Attorney General Caroline D&period; Ciraolo of the Justice Department’s Tax Division announced today&period;<&sol;p>&NewLine;<p>Between January 2006 and December 2008&comma; the perpetrators of the scheme purchased single-family homes in Detroit for approximately &dollar;5&comma;000 to &dollar;40&comma;000 each and re-sold the homes to third party individuals&comma; referred to as &OpenCurlyDoubleQuote;straw buyers&comma;” that they recruited&period;  The co-conspirators then caused fraudulent <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;category&sol;mortgage&sol;" title&equals;"mortgage" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"46">mortgage<&sol;a> loan applications in the names of the straw buyers to be submitted to financial institutions&period;<&sol;p>&NewLine;<p>On July 16&comma; 2014&comma; a grand jury returned a superseding indictment charging seven defendants with conspiracy to commit bank fraud&comma; bank fraud&comma; aiding and assisting in the filing of false tax returns and bankruptcy fraud&period;  All of the defendants named in the superseding indictment pleaded guilty to conspiracy to commit bank fraud for their role in the scheme&period;<&sol;p>&NewLine;<p>On Jan&period; 11 and 12&comma; U&period;S&period; District Judge Bernard A&period; Friedman of the Eastern District of Michigan announced the following sentences&colon;<&sol;p>&NewLine;<ul>&NewLine;<li>Jason Najor&comma; 39&comma; of West Bloomfield Township&comma; Michigan&comma; was sentenced to 16 months in prison&comma; followed by four years of supervised release&comma; and ordered to pay restitution to the affected <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;tag&sol;financial-fraud&sol;" title&equals;"financial" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"560">financial<&sol;a> institutions in the amount of &dollar;705&comma;900&period;<&sol;li>&NewLine;<li>Jeffrey Najor&comma; 32&comma; of Wixom&comma; Michigan&comma; was sentenced to 24 months in prison&comma; followed by four years of supervised release&comma; and ordered to pay restitution to the affected financial institutions in the amount of &dollar;1&comma;707&comma;200&period;<&sol;li>&NewLine;<li>Suhail Hallak&comma; 59&comma; of Oak Park&comma; Michigan&comma; was sentenced to 15 months in prison&comma; followed by three years of supervised release&comma; and ordered to pay restitution to the affected financial institutions in the amount of &dollar;759&comma;804&period;<&sol;li>&NewLine;<li>Joey Murad&comma; 37&comma; of Old Shelby Township&comma; Michigan&comma; was sentenced to 33 months in prison&comma; followed by four years of supervised release&comma; and ordered to pay restitution to the affected financial institutions in the amount of &dollar;188&comma;904&period;<&sol;li>&NewLine;<li>Al Karana&comma; 46&comma; of Old Sterling Heights&comma; Michigan&comma; was sentenced to one day in jail&comma; followed by three years of supervised release to include one year of home confinement&comma; and ordered to pay restitution to the affected financial institutions in the amount of &dollar;204&comma;600&period;<&sol;li>&NewLine;<&sol;ul>&NewLine;<p>Two of the defendants named in the superseding indictment were previously sentenced to prison&period;  In January 2015&comma; Wasseem Shamoun&comma; 50&comma; of Northville&comma; Michigan&comma; was <a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;opa&sol;pr&sol;michigan-man-sentenced-prison-home-mortgage-fraud-conspiracy"><u>sentenced<&sol;u><&sol;a> to 15 months in prison and ordered to pay restitution to the in the amount of &dollar;394&comma;000&comma; following his plea of guilty to conspiracy to commit bank fraud&period;  In September 2014&comma; Peter Allen&comma; 44&comma; of Southfield&comma; Michigan&comma; was <a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;opa&sol;pr&sol;michigan-man-sentenced-mortgage-fraud-conspiracy-using-straw-home-buyers"><u>sentenced<&sol;u><&sol;a> to 21 months in prison and ordered to pay restitution in the amount of &dollar;194&comma;300&comma; for his role in the bank fraud scheme&period;<&sol;p>&NewLine;<p>In addition to the seven defendants named in the superseding indictment&comma; two other individuals connected to the scheme have pleaded guilty and been sentenced to prison&period;  In September 2015&comma; Mary Ann Paschal&comma; who served as a straw buyer for multiple properties and received substantial fees for her participation&comma; was sentenced to one year and one day in prison and ordered to pay restitution in the amount of &dollar;523&comma;750&period;  Also in September 2015&comma; Shawn Alexander Reed&comma; a mortgage broker who assisted in the preparation of false mortgage <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;category&sol;loans&sol;" title&equals;"loan" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"204">loan<&sol;a> applications&comma; pleaded guilty and was sentenced to 15 months in prison&period;<&sol;p>&NewLine;<p>Acting Assistant Attorney General Ciraolo thanked special agents of the FBI&comma; Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration&comma; who investigated the case and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division&comma; who prosecuted the case&period;<&sol;p>&NewLine;<p><a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;opa&sol;pr&sol;michigan-residents-sentenced-prison-mortgage-fraud-scheme">Original PressReleases &&num;8230&semi;<&sol;a><&sol;p>&NewLine;

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