Four Plead guilty along with Chief of Police Son in Cape Coral, Florida

Stephen Petrovich, Chief of Police, Rob Petrovich son and Steven Reese, Ryan O’Brien, Tyler Forrey and Troy Bossert have all entered pleas in relation to a four million two hundred thousand dollar mortgage conspiracy.

The five were accused of conspiring to obtain financial gain by submitting and obtaining fraudulent mortgage loans.

Mr. Forrey and Mr. Reese ran a brokerage firm that invested in properties and then flipped those properties. The investment company is New Cape Holdings, LLC. Mr. Forrey also managed Douglas Holdings and Development, Inc. and Mr. Petrovich managed Noah Enterprises, LLC and Four Forty Two Holdings, LLC. along with Mr. O’brien.  Mr. Bossert is a licensed real estate agent and managed Helios Financial Center, Inc. Mr. Bossert was also a signatory for bank accounts held by ACI Holdings, Inc. All the business controlled by the group are based in Cape Coral.

Prosecutors in the case state that Mr. Bossert, Mr. Forrey and Mr. Reese between May of 2007 and July of 2008 would seek out homes for sale by owner. The trio would then have Mr. Forrey, Mr. Reese and Mr. Petrovich contact the owners and negotiate a purchase price with the sellers on the behalf of third party buyers. The trio would negotiate a sale price that was inflated in order to obtain monies at closing.

The third parties in the case would be instructed to provide fraudulent financial information on mortgage loan applications. Mr. Forrey, Mr. Reese, Mr. O’Brien and Mr. Petrovich would instruct those third party buyers to make three payments on the properties and then stop making payments altogether. The properties would then fall into foreclosure.

Mr. Petrovich original approached Mr. Reese because he was in need of money. Mr. Forrey and Mr. Reese orchestrated the purchase of a property in Fort Myers. The seller of the property agreed to sell the home at the inflated price of seven hundred twenty five thousand dollars. The seller was told that the buyer needed the inflated price in order to remodel the home. Mr. Bossert altered the cashier check to show a deposit from Mr. Petrovich to the seller.

IndyMac Bank wired six hundred fifty one thousand dollars to Lee Title Services and sent one hundred two thousand dollars to New Cape Holdings, which was controlled by Mr. Forrey and Mr. Bossert. Sixty two thousand dollars was then sent to Mr. Forrey’s personal bank account and thirty seven thousand was transferred to Mr. Petrovich. Mr. Petrovich later filed for bankruptcy and used the monies to pay for legal fees and other loan expenses.

The group later cut out the sellers in the deals as the real estate market began to crash in 2008. The sellers at that point became reluctant to sell at the inflated prices. The conspirators at that point altered HUD-1 Statements in order to continue their scheme of fraud.

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