Former New Jersey Mortgage Broker Admits Role in Multi-Million-Dollar Mortgage Fraud Scheme

TRENTON, NJA former New Jersey mortgage broker admitted today that he participated in a mortgage fraud scheme which defrauded lenders and generated millions of dollars in fraudulent mortgage loans. Ara Mesropian, 39, of Paramus, N.J., pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud. Mesropian entered his guilty plea before U.S. District Judge Peter G. Sheridan in Trenton federal court. According to documents filed in this and related cases and statements made in court: Mesropian admitted that from March 2008 to January 2009, he participated in a scheme to defraud mortgage lenders by completing fraudulent residential loan applications in order to procure millions of dollars in home loans. The loan applications contained material misrepresentations, including that borrowers put cash down at the closings and that the properties would be the borrowers primary residences. The applications also showed inflated assets and earnings for borrowers. Mesropian admitted that he submitted the fraudulent loan applications to the mortgage lenders. As a mortgage broker, Mesropian assisted co-conspirators Eddie Dukhman, 35, of Sewaren, N.J., and Frank Corallo, 38, of Maywood, N.J., who were previously charged by Complaint in connection with the scheme. Dukhman, with the assistance of two attorneys, arranged to purchase properties owned by financial institutions, commonly referred to as real estate- owned, or REO properties. At about the same time, Corallo recruited other individuals to purchase those same properties. Dukhman, Corallo, Mesropian, and other co-conspirators employed numerous fraudulent techniques to further their schemeincluding falsifying financial documents, HUD-1 settlement statements and residential loan applications; causing borrowers to apply and obtain loans on properties that they did not own; and failing to record deeds with the county clerk. The wire fraud conspiracy count to which Mesropian pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is currently scheduled for November 22, 2011.