An indictment was unsealed yesterday in a Brooklyn, New York Court which charged ten defendants, including three attorneys, two title abstractors, an appraiser, and two licensed real estate brokers, with conspiracy, bank fraud, and wire fraud.

The indictment alleges that the defendants fraudulently obtained over $10 million in loans from American Home Mortgage, Fremont Bank, BNC Mortgage (a subsidiary of Lehman Brothers), and WMC Mortgage (a subsidiary of GE Money Bank), via an elaborate mortgage fraud scheme.

Prosecutors allege that from January 2005 to May 2007, Akin Ayorinde, 44, and Anthony Onua, also 44, both licensed lawyers, and John Star, 39, a licensed mortgage broker, purchased properties located in Brooklyn and Queens, using false loan applications to create the appearance that the properties were being purchased by creditworthy individuals, when, in fact, the properties were purchased at inflated prices by straw buyers who were recruited by Hervin Henry, 65, a real estate broker also named in the indictment.  

Another individual named in the indictment, Anthony Suazo, 40, allegedly furnished fraudulent appraisals to support the inflated purchase prices of the properties.  Attorney Onua and two other indicted individuals-- Max Shimba, 39, and Marisol Vasquez, 37-- allegedly provided fraudulent title abstract reports and other documentation which induced lenders to issue loans which were far in excess of the true value of the properties.

According to the indictment, the defendants were assisted in the fraud by a third attorney, Umana Oton, 42, who is also licensed to practice in the State of New York. Ayorinde, Onua, and Oton served as attorneys at the closings and allegedly were aware that there were fraudulent misrepresentations made to lenders in connection with the closings.

The maximum term of imprisonment for any defendant convicted of conspiracy to commit bank and wire fraud is 30 years. The indictment also seeks forfeiture of the proceeds of the defendants’ bank and wire fraud activities, including a criminal forfeiture money judgment and money traceable to the offenses.