A Brooklyn real estate businessman has been convicted in a multi-million dollar fraud scheme, manipulating the mortgage loan system and taking advantage of programs designed to aid homeowners in distress. The federal jury's decision came down yesterday, with Avraham Tarshish facing up to 30 years in prison for his role in a plot that defrauded mortgage loan holders out of millions.
According to the U.S. Attorney's Office release, United States Attorney Breon Peace said, "The defendant defrauded taxpayer-funded mortgage loan holders out of millions of dollars and took advantage of programs designed to help distressed property owners in need." The manipulative tactics included fraudulent liens and making properties appear less valuable – even by removing toilets and plumbing fixtures, a process Tarshish's team dubbed as making the homes “pretty.”
Tarshish, associated with Brooklyn- and Queens-based firms including My Ideal Property Inc. and Exclusive Homes Realty Group, Inc., was involved in conspiring to defraud mortgage lenders by misleading them into approving short sale transactions at intensely deflated prices between March 2013 and November 2018.
According to the evidence presented at trial, the conspiracy spanned several years involving dozens of fraudulent short sale transactions, with the government specifically detailing eleven cases in Brooklyn where lenders were swindled out of more than $2.4 million. Special Agent-in-Charge Robert Manchak of the FHFA-OIG's Northeast Region stated, "Today's verdict demonstrates the resolve of the Federal Housing Finance Agency Office of Inspector General and its law enforcement partners to pursue those who defraud the government-sponsored enterprises," in the same release.
The scheme caused significant harm to both mortgage lenders and the housing market, affecting real estate values and limiting fair housing access for local residents. U.S. Attorney Peace emphasized that short sale mortgage fraud not only damages lenders but also lowers property values and prevents community members from accessing affordable housing.
Anyone with information related to such mortgage fraud can report it to the Federal Housing Finance Agency Office of Inspector General Hotline or via their website. Peace, who now also chairs the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee, emphasizes the ongoing commitment of the office to combat financial crimes.
The prosecution of the case was managed by the Office's Business and Securities Fraud Section, with Assistant United States Attorneys Shannon C. Jones, John Vagelatos, Joshua B. Dugan, and Russell Noble leading the charge, displaying continued vigilance in the face of fraudulent activities threatening community and economic stability.
