Attorney Sentenced to 5 Years in Prison in Mortgage Loan Fraud Scheme

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Education & Training with 123 ConEd LLC -- Michigan real estate continuing education School Sponsor 373

justice

Here is another example of a recent legal case involving a fraudulent real estate scheme committed by a real estate agent. I try to post case summaries in order to provide timely updates to real estate professionals on important issues.

On May 11, 2009, John A. Yanchek was sentenced to 60 months in prison and ordered to forfeit $7.6 million for conspiracy to commit loan fraud, bank fraud, and money laundering.

According to court documents, Mr. Yanchek was a licensed Florida attorney who did business as the law firm of John A. Yanchek, P.A., in Sarasota, Florida. Mr. Yanchek represented G & T Land Development LLC and Steeplechase Properties LLC, legal entities owned and/or controlled by his co-conspirators, that purchased and developed commercial real estate in the Sarasota area. Mr. Yanchek also functioned as a closing agent.

According to the plea agreement, Mr. Yanchek entered into a conspiracy to make false statements to federally-insured banks in connection with applications for commercial loans used to purchase vacant land for development. The object of the conspiracy was to obtain enough loan money to allow the conspirators to purchase the property without contributing any equity of their own and to receive excess loan proceeds for their personal use.  Mr. Yanchek, as the closing attorney for the loans, made false statements to the banks regarding: (1) the financial resources of the borrower, (2) the amount and source of equity contributed by the borrower, (3) compliance with the seller's obligation to provide marketable title to the property, and (4) distribution of the loan proceeds.

Co-defendant Larry P. Nardelli was convicted on February 19, 2009, and is awaiting sentencing. Michael A. Tringali pleaded guilty and received a 41 month prison sentence. The third co-defendant Neil M. Husani remains a fugitive.

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Rainmaker
383,972
Kathleen Cooper
Kathleen Cooper, Sposato Realty Group - Worcester, MA
Sposato Realty Group - Broker Owner

Wow this is crazy stuff!  And to think that we have people that physically hurt people walking the street in less time than this sometimes.  Don't mess around in this economy!  Especially not with money!

 

May 30, 2009 10:13 AM #1
Rainmaker
496,427
Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Very interesting.  It may take a month, a year, a decade, or more...but the truth eventually comes out when anyone (yours truly included) does wrong. 

May 30, 2009 11:30 AM #2
Rainmaker
492,227
Richard T. Dolbeare
Keller Williams Realty Maui - Kahului, HI
R(B), ABR, CRS...Hawaii Multi-Island Specialist

It's amazing to see some of the people going to prison these days.  There is an individual here on Kauai in that "boat" and he is one I've worked with personally in the past.  It's a shocker to see it happen to someone close.

May 30, 2009 11:49 AM #3
Ambassador
1,893,189
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Most of us can name at least one "team" where it looked like a duck, quacked like a duck and was probably a duck and there should be consequences attached to what they did.

May 30, 2009 01:01 PM #4
Rainer
11,661
Peter Fragos
www.Search4MiamiHomes.com - Aventura, FL

Well, I'm truly glad to see some of the people in my area who thought I was out of my mine for not jumping on the money train at the time and for critizing them and now they are on the going to court train... I told them all I wasn't going to risk my license or my life for something I knew was wrong!

 

Peter Fragos

www.Search4MiamiHomes.com

Nov 15, 2009 02:45 AM #5
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Rainmaker
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Jason Rose

www.123ConEd.com
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