Mortgage Fraud and Money Laundering-New York

A federal grand jury in Albany, N.Y. returned a 30 count felony mortgage fraud and money laundering indictment against Anthony Andersen, 53, of Florence, Massachusetts. ^[1]

The allegations contained in the indictment contend that Andersen held himself out as a mortgage broker who did business under a number of companies he owned or operated.^[2] In 2001 and 2002, Andersen recruited people who allowed him to use their names and identifying information to obtain loans from Union Planters Bank, for the purpose of refinancing real properties in New York that were owned or controlled by Andersen.^[3]

As part of the alleged scheme, shortly before the closings on the loans, Andersen would transfer title for these properties to straw borrowers. ^[4] Andersen told the straw borrowers that he would maintain control of the properties and that he would be responsible for the loans obtained from the bank.^[5] Andersen then allegedly would re-acquire the title from the straw borrowers after the closings on the loans and he would pay the straw borrowers for allowing him to use their names and identifying information to obtain the loans.^[6]

Mortgage fraud does not have its own federal statute associated with it. However, that does not prevent the federal government from aggressively prosecuting the crime under the title of "mortgage fraud."

Mr. Anderson’s grand jury indictment accuses him of several mortgage fraud crimes and money laundering crimes. He is charged with one count of conspiracy, 18 U.S.C. § 371^[7], 13 counts of making or causing false statements to be made to federally insured financial institutions in violation of 18 U.S.C. § 1014 ^[8], one count of executing a scheme to defraud a federally insured bank in violation of18 U.S.C. § 1344^[9] (bank fraud), one count of causing monetary transactions to be conducted with the proceeds of specified unlawful activities for the purpose of promoting said unlawful activities (commonly referred to as "promotion money laundering"), four counts of causing monetary transactions to be conducted with the proceeds of specified unlawful activities designed, in whole or in part, to conceal or disguise the proceeds of said unlawful activities (commonly referred to as "concealment money laundering") under 18 U.S.C. § 1956 & 1957^[10], and 10 counts of causing monetary transactions over $10,000 to be conducted in funds derived from said specified unlawful activities.^[11]

For an in-depth discussion of all mortgage fraud crimes, please visit our website here.

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[1] Mortgage Fraud, Money Laundering Indictment Handed Up, Empire State News.net, February 21, 2007.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] 18 U.S.C. § 371 (2005).
[8] 18 U.S.C. § 1014 (2005).
[9] 18 U.S.C. § 1344 (2005).
[10] 18 U.S.C. §§ 1956, 1957 (2005).
[11] Mortgage Fraud, supra note 1.