LA woman pleads guilty to Mortgage Fraud

United States Attorney for the Northern District of New York, Richard Hartunian along with Special Agent in Charge of the Office of Inspector General, United States Department of Housing and Urban Development in New York, Rene Febles, Special Agent in Charge of Albany Division of the Federal Bureau of Investigation, John Pikus and Lt. John Durling of New York Police Special Investigation Unit announced on February 17th that Michael Cassadi and appraiser Elmer McIndoo pled guilty in relation to their involvement in a mortgage fraud scheme.  Mary Fox Ianniello did not plead at that time.

The three defendants in the case faced up to thirty years in federal prison and a fine of up to one million dollars, a period of up to five years of supervised release to follow and mandatory restitution and forfeiture of assets. The assets in the case have a combined total of one hundred thirty five thousand one hundred forty eight dollars and forty five cents.

Mary J. Fox Ianniello, age 46 who currently resides in Los Angeles, California pleaded guilty on March 1st for her involvement in the mortgage fraud scheme. The scheme was headed by Michael Cassadei and Elmer McIndoo. The conspirators used fraudulent mortgage loan documents and appraisals to cause First Union National Bank of Delware to finance the sale of Capital Region, New York residential properties to third parties. The sales were made in excess of the actual values of the properties. The defendants used the proceeds from the mortgage loans to purchase additional properties for well under the actual values of the properties however McIndoo’s used his appraisals to inflate the values to ensure the conspirators could reap the proceeds from the difference of the sales price and the purchase price.

Ms. Ianniello assisted in the mortgage fraud scheme by submitting fraudulent mortgage applications, preparing false settlement statements and other closing documents as well as handling the distribution of the mortgage loan proceeds.

The investigation was conducted by the Office of the Inspector General of the United States Department of Housing and Urban Development, the Albany Division of the Federal Bureau of Investigation, the New York State Police Special Investigation Unit, The Internal Revenue Service, Criminal Investigation Division, the United States Postal Inspection Service and the New York Banking Commission.

The United States Attorney’s Office for the Northern District of New York will be prosecuting the case.

Ms. Ianniello is scheduled to appear before United States District Judge Thomas McAvoy in Albany, New York on July 13, 2010 at 1 pm.


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