Federal prosecutors in Manhattan on Thursday said they had dismantled a $58 million mortgage fraud scheme run by a New York brokerage company. Charges were announced against 14 people in a purported scheme that authorities said was run through Long Island, New York-based brokerage firm First Class Equities. A telephone number listed for the company appeared to be disconnected.
All 14 defendants could face up to 30 years in prison if convicted on a conspiracy to commit bank and wire fraud charge, according to court papers. Some of the defendants face additional charges. Court papers said that from 2004 to 2009, some of the accused would pose as fake home buyers and received more than 100 home mortgage loans valued at $58 million. Assisting in the scheme, prosecutors said, were five lawyers, one of whom was disbarred.
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