A former New York mortgage broker pleaded guilty this past week for his alleged involvement in a mortgage fraud scheme involving several homes in the Bronx area.
According to the United States Department of Justice (USDOJ), Greggor Gibbons, 51, of Pleasantville, N.Y., pleaded guilty to conspiracy to commit wire fraud affecting a financial institution before Chief U.S. District Judge Frank P. Geraci, Jr. The announcement was made by acting U.S. Attorney James P. Kennedy Jr.
Gibbons had conspired with other defendants, including Alagi Samba, a realtor, and Daniel Badu, from June 2008 and February 2009, to devise a scam to get 8 mortgages for unqualified borrowers for homes in the Bronx, New York area using fraud. Gibbons acted as the mortgage broker on the transactions which gave him access to the loan application so he could alter the income, employment, and assets of the borrowers so they would qualify for loans they would normally never be approved for.
For example, Gibbons altered the employment of one of the defendants, so he could qualify for a loan a property at 814 Faile Street in the Bronx. According to the USDOJ, Gibbons falsely stated on the application that Badu was a research ophthalmologist and earned a specific income when in fact, Badu was not a research ophthalmologist nor did he receive the income stated on a loan application.
Gibbons knowingly submitted the fraudulent loan application in order to secure a FHA loan from a mortgage bank called The Funding Source. The USDOJ said that the Funding Source then sold the loan on the secondary market to M &T Bank, which wired funds from New York through the State of Ohio to purchase the loan.
The defendant and his co-conspirators caused wire communications to be transmitted in interstate commerce for those fraudulent loan transactions which caused losses of approximately $4,800,007 affecting M&T Bank and other financial institutions including SunTrust Bank, JPMorgan Chase Bank, and Citibank.
Defendants Badu and Samba have also been convicted and are awaiting sentencing. Charges are pending against co-defendants Julio Rodriguez, Laurence Savedoff, and Tina Brown.
Gibbons and the co-defendants, in this case, are presumed innocent until proven guilty. Gibbons faces a maximum penalty of 30 years in prison and a $1,000,000 fine. He is scheduled to be sentenced on October 19, 2017, at 2:00 p.m. before Judge Geraci.