St.Charles man among those indicted in mortgage scam case
From Submitted Reports July 25, 2012 10:26AM
Updated: August 27, 2012 11:08AM
CHICAGO — Seven men, including a St. Charles real estate investor and a former Sandwich businessman, were indicted by a federal grand jury this week for allegedly participating in a scheme to fraudulently obtain more than 20 residential mortgage loans totaling approximately $8.5 million from various lenders.
According to a press release form the FBI, the indictment alleges that the mortgages were obtained to finance the purchase of properties primarily in and around Englewood and West Englewood in Chicago by buyers who were fraudulently qualified for loans while the defendants allegedly profited. As a result, various lenders and their successors incurred losses because the mortgages were not fully recovered through subsequent sale or foreclosure.
All seven defendants were charged with one or more counts of mail fraud and/or wire fraud in the 12-count indictment. The indictment also seeks forfeiture of at least $8.5 million. Indicted were:
Steven Klebosits, 40, of St. Charles, and Thomas Hyland, 40 of Glen Ellyn, who owned SNAP Holdings LLC, through which they bought and sold properties, each charged with four counts of mail fraud and eight counts of wire fraud.
Jason Strever, 30, formerly of Sandwich, who owned JMS management Corp., charged with one count of mail fraud.
Joseph Natalizio, 39, of Bloomingdale, a licensed loan originator and the president and co-owner of JNC Mortgage Inc., which operated as United Mortgage Services in Addison, charged with two counts of mail fraud and five counts of wire fraud.
Diomede Cardone, 32, of Addison, also a licensed loan originator who worked at United Mortgage Services, charged with two counts of wire fraud.
Joseph Abate, 48, of Downers Grove, who owned APJ Consulting Inc., charged with two counts of mail fraud and one count of wire fraud.
Yusef Allan, 31, of Chicago, a licensed loan originator who owned Silver Key lending and Investment Group LLC, in Orland Park, charged with one count of mail fraud.
According to the release, between March 2007 and November 2008, all seven defendants and others allegedly schemed to obtain the fraudulent mortgages by making false representations in loan applications, supporting documents, and settlement statements concerning the buyers’ income, employment, financial condition, source of down payments, and intention to occupy the property.
As part of the scheme, Klebosits and Hyland allegedly sold properties at inflated prices to buyers whom they knew were fraudulently qualified for mortgage loans. Klebosits, Hyland, Cardone, Strever, and Abate recruited buyers to purchase properties from entities, including SNAP Holdings, owned by Kelbosits and Hyland, knowing that the buyers would be qualified through false statements made to lenders, the indictment alleges.
Each count of wire fraud and mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.