U.S. Attorney’s Office Reports Further Success in Operation Stolen Dreams

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. today announced the local results of year two of Operation Stolen Dreams, a nationwide operation targeting mortgage fraudsters throughout the country.

In 2010, President Barack Obama organized an interagency Financial Fraud Enforcement Task Force, established to lead an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. In Western New York, the U.S. Attorney’s Office prosecuted seven cases in the period concluding June, 2010. Since last year, the office doubled its prior results by filing 14 complaints, indictments, or pleas.

“Mortgage fraud can devastate families. Left unchecked, such crimes can also harm entire communities,” said U.S. Attorney Hochul. “Thanks to the work of our local Mortgage Fraud Task Force, we are tracking down and prosecuting those unscrupulous fraudsters who seek to victimize those wanting to live the American dream of owning a home.”

Operation Stolen Dreams focuses not only on federal criminal cases, but also on civil enforcement, recovering money for victims, and increasing cooperation with state and local partners.

Local cases included:

United States vs. Alvarez (Criminal)

Elsy Alvarez was an employee of the Federal Guaranty Mortgage Company based in Florida, and was responsible for preparing loan packages and forwarding the documents to investor financial institutions. The defendant signed multiple loan documents using multiple names for a single property and forwarded the documents to multiple investor financial institutions, including M&T Bank. The proceeds of the fraudulent loans were subsequently wired into the account of a company associated with the Federal Guaranty Mortgage Company. As a result, M&T Bank and eight other financial institutions lost approximately $24,000,000.

United States vs. Goods (Civil)

Former attorney Robert R. Goods, a one-time mortgage settlement attorney, was convicted of bank fraud after using money intended to pay off mortgages for his own personal use. As a result of Goods’ actions, SunTrust Bank lost $521,872. Goods was ordered to pay $600,000 in civil money penalties to the United States.

The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.

The local Mortgage Fraud Task Force is led by Assistant U.S. Attorneys Trini E. Ross and Kathleen A. Lynch and includes members of the FBI, IRS, Veterans Affairs, HUD-OIG, U-S Trustee, Secret Service, U-S Postal Inspection Service, NYS Banking Department, NYS Attorney General’s Office and the Erie County District Attorney’s Office.