Tuesday, November 02, 2010

Mortgage fraud

Many people have blamed the subprime meltdown on all that scum whats wanted to get a house they clearly weren't entitled to couldn't afford. Guambat is dubious, but this story shows what could happen if it were true.

Johnston Sen. Maselli charged with bank fraud
State Sen. Christopher B. Maselli, D-Johnston, was indicted Thursday on federal charges that he falsified bank and federal tax documents, and lied about his income and assets, in obtaining more than $1.5 million in mortgages.

Maselli was indicted on seven counts of bank fraud, a spokesman for U.S. Attorney Peter Neronha confirmed Friday morning.

According to the indictment, Maselli, a self-employed real estate attorney in North Providence, inflated his annual income dating back to 2005, lied about his personal assets, and submitted phony and altered bank statements and IRS tax returns when applying for mortgages, a home-improvement loan, and an auto loan.

Maselli denied the accusations through his lawyer. Boston attorney William H. Kettlewell said in a statement that several of the loans have been paid in full, and the remaining loans are being paid in according to the "lenders" requirements.

"The banks have not lost a cent," Kettlewell stated. "In short, there was no fraud, there is no fraud and we believe there will never be a determination of fraud concerning these loans."

Maselli was approved for five mortgages on residential properties in Johnston and North Providence, and an auto loan for a 2005 Lexus SUV, totaling approximately $1,525,027.50, according to the U.S. Attorney's office.

RI state senator resigns, to plead guilty to fraud
Sen. Christopher Maselli, a Johnston Democrat and real estate lawyer, resigned on Monday. He is scheduled to plead guilty in federal court in Providence on Wednesday to eight counts of bank fraud.

Maselli's lawyer, William H. Kettlewell, says Maselli deeply regrets his actions. He says the loan payments are current and the banks have not lost any money on them.

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