The FBI made numerous arrests in New York City, Orange County and Monsey Thursday involving an apparent long-term mortgage and welfare fraud case.
An
extended family and several business associates were indicted on federal
charges Thursday in a rich man, poor man mortgage and welfare fraud scheme that
authorities say netted more than $20 million.
Federal
agents arrested 13 people in pre-dawn raids in the ultra-Orthodox Jewish
communities of Williamsburg in Brooklyn, Kiryas Joel and Monroe in Orange
County, and Manhattan. Those charged include a Monsey resident who allegedly
provided faulty real estate appraisals as part of the fraud. Two more people
indicted are expected to surrender Thursday, authorities said.
"The
defendants involved alternately played the parts of prince and pauper depending
on which scam was being perpetrated," U.S. Attorney Preet Bharara said at
a news conference in White Plains. "There's a lot of fraud here and shell
games... The fraud was complex and they were fairly organized."
He said
the investigation is continuing.
Using
falsified documents and concealed identities, the group obtained $20 million in
mortgages and other loans from banks and financial institutions, according to
the 21-count federal indictment unsealed Thursday morning.
Bharara
said some of the defendants doubled dipped, claiming to be rich while obtaining
million dollar loans and mortgages and then pleading poverty – even
homelessness – to get welfare payments and social services.
They
used the money to pay credit card debts, mortgages, an on other real estate
projects, and to enrich themselves and their families, authorities said. They
also provided charity to residents of Brooklyn, Monroe and Kiryas Joel.
