$100 million dollars in mortgage fraud has led to two Manhattan men being sentenced to years in prison.
Here is a scenario, not for the faint of heart – you decide to purchase your first home. After reviewing several reputable mortgage companies you choose one that best fits your need. Things are going well until you find out that the money you thought was being paid to your house is actually being paid to a white collar con man. This is exactly what has happened for thousands of homeowners throughout the Garden City, NY area. AFG Financial Group Inc has taken part in one of the biggest scams in mortgage history. President Aaron Hand and CEO Eric Shields have been sentenced to 5 ˝ to 25 years in prison as a result of the $100 million dollar mortgage fraud that they schemed. While this news may be comforting for new homeowners, it is less than ideal for the thousands that were left with deteriorating credit ratings and empty pockets. A mortgage scheme, such as this, takes more than two well-educated people. Thus far there have been 25 other employees convicted as being a part of this scam. The company fed on the needs of families facing financial hardship and possible foreclosure. Third party buyers would front the cash needed for a property purchase which would then ultimately be pocketed by the company. False W-2 statements, forged bank documents and phony loan packages were all a part of the elaborate scheme that has robbed so many people.
