Rebecca Marie Cohn, also known as Rebecca Marie Stanton, has admitted guilt in Baltimore federal court to making false statements to financial institutions during real-estate settlements. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the plea, alongside Federal Housing Finance Agency and Federal Deposit Insurance Corporation officials.
Between 2013 and 2019, Cohn was employed by Residential Title & Escrow Company, a real estate title firm in Owings Mills, Maryland. Her role involved handling real estate settlements, creating and submitting HUD-1 Settlement Statements, documenting finances, and ensuring the accuracy of equity injections in real-estate transactions.
Cohn collaborated with co-defendants Mehul Ramesh Khatiwala, alias “Mike Khatiwala,” Rajendra G. Parikh, and Jennifer H. Watkins, who have pleaded guilty to conspiracy linked to a hotel-flipping scheme. They formed shell entities to manipulate prices and transactions, aiming to profit.
Loans for these activities were sought via the SBA’s Section 7(a) Program, necessitating personal financial investment from borrowers. From June to August 2019, Cohn processed transactions with knowledge of false information. This included equity injections falsely documented and misrepresented to secure loans.
An example involved submitting a deceptive HUD-1 Settlement Statement to North State Bank in July 2019, overstating earnest money and misrepresenting the settlement date. This submission was essential for securing a loan necessary for purchasing a hotel.
Cohn faces a potential 30-year federal prison sentence, though actual sentences typically fall below maximums, as determined by federal district court judges under sentencing guidelines.
U.S. Attorney Hayes acknowledged the contributions of FHFA-OIG and FDIC-OIG in the investigation and appreciated the efforts of Assistant U.S. Attorneys Harry M. Gruber, Evelyn L. Cusson, Ari D. Evans, and Paralegal Specialists Joanna B.N. Huber and Zharde Todman.
Those seeking additional information about the Maryland U.S. Attorney’s Office are encouraged to visit their official website.
