U.S. Attorney Breon S. Peace | U.S. Department of Justice
A federal jury in Brooklyn has found Avraham Tarshish guilty of conspiracy to commit wire fraud and bank fraud, as well as related wire fraud counts. The charges stem from a scheme aimed at defrauding mortgage loan holders, including major entities like the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). The trial lasted 12 days under Chief United States District Judge Margo K. Brodie.
Breon Peace, United States Attorney for the Eastern District of New York, along with other officials from agencies such as the Federal Housing Finance Agency's Office of Inspector General and the U.S. Department of Housing and Urban Development's Office of Inspector General, announced the verdict.
"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," stated United States Attorney Peace. He added that short sale mortgage fraud not only harms lending institutions but also affects real estate values and community access to housing.
The scheme involved Tarshish manipulating short sale processes by misrepresenting information to secure approvals at lower prices than market value, leading to significant financial losses for lenders. "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 government-sponsored enterprises," said Robert Manchak, Special Agent-in-Charge at FHFA-OIG’s Northeast Region.
Special Agent Vicky Vazquez noted that "Tarshish and other co-conspirators engaged in a $2.4 million scheme" that exploited FHA-insured mortgage lenders by approving fraudulent short sales.
The investigation revealed that Tarshish was associated with several companies formed for real estate transactions in Queens and Brooklyn. Between March 2013 and November 2018, he conspired with others to manipulate property values through deceptive practices like creating false liens or damaging properties intentionally.
The case was prosecuted by Assistant United States Attorneys Shannon C. Jones, John Vagelatos, Joshua B. Dugan, Russell Noble, along with Paralegal Specialist Liam McNett handling forfeiture matters.
Tarshish now faces up to 30 years in prison when sentenced. His co-defendants had previously pleaded guilty and face various sentences depending on their involvement.
Anyone with similar information regarding mortgage-related fraud is encouraged to contact the relevant authorities through provided hotlines or online forms.
