NEWARK, NJ – A Freeport, NY man was sentenced today to 12 months and one day in prison for conspiring to implement a $ 9 million scheme to use fake information and concurrent loan applications from several banks to receive fraudulently. – said the acting. US Attorney Rachel Honig.
Yors Yotagri, 54, previously pleaded guilty before US District Judge John Michael Vasquez to one count of conspiracy to commit banking fraud. Judge Vasquez delivered his verdict today in federal court in Newark.
According to the materials of the case and statements in court:
Yotagri was a business associate of Jorge Flores of Oakdale, New York, and Jose Piedrachita of Freeport, two of the convicted conspirators. From 2010 to February 2018, Yotagri, Flores, Piedrachita and others conspired to fraudulently obtain from banks multiple Home Building Credit Lines (HELOC) on residential properties in New Jersey and New York.
In August 2016, Yotagri lived in a mansion in Freeport. A waiver act was drafted, which simplified the transfer of ownership of the property to Yotagri and Piedrachita, although Piedrachita did not own this property.
In September 2016, when Freeport’s property is now owned by Yotagri and Piedrachita, the conspirators applied for a $ 290,000 HELOC from a victim bank in the names of Yotagri and Piedrachita, using the property as collateral. Piedrachita’s contact information appeared in the HELOC addendum to Freeport’s property, which also lists Piedrachita’s inflated income and assets. On December 2, 2016, based on false statements in the application, the victim bank issued a HELOC to Piedrahita in the amount of $ 290,000. Piedrachita then paid $ 290,000 to himself, Yotagri and Flores. HELOC funds were never returned.
In January 2017, Flores called another victim bank and applied for a second $ 250,000 HELOC in Piedrachita’s name, again using Freeport’s property as collateral. This time, Flores’ email address and phone number appeared in the HELOC app in Freeport. To demonstrate to the second victim bank that the property was not encumbered with any senior mortgages, Flores and Piedrachita sent several forged documents to the victim bank to conceal the existence or amount of senior mortgage debt. The fake documents submitted by the defendants included a series of fake payout letters and fake checks from other banks, all of which were presented to trick the injured bank into believing that the remaining amount of senior mortgages on Freeport’s property was much less than was actually owed.
On March 22, 2017, the second bank of victims issued HELOC to Piedrachita for $ 250,000. Piedrachita then paid almost all of the HELOC funds to himself and Yotagri. The funds received by Piedrachita and Yotagri from HELOC were not refunded and were overspent, resulting in a loss of about $ 290,000 to the second bank of victims.
At the time the two HELOCS applications were filed, there was not enough capital in Freeport’s ownership to support $ 540,000 in HELOC applications filed by Flores, Piedrachita and Yotagri.
The overall scheme, which included HELOC loans for approximately 17 different properties, resulted in over $ 9 million in losses for the victim banks.
In addition to his imprisonment, Judge Vasquez sentenced Yotagri to three years of forced release and ordered him to pay compensation in the amount of $ 580,048.
Acting U.S. Attorney Honig assigned Special Agents to the Federal Housing Finance Agency – Office of the Inspector General (FHFA-OIG) of the Northeast Region, led by Special Agent in charge Robert W., and FBI Special Agents, led by Special Agent George M. Crouch, Jr., in Newark, whose investigation led to today’s verdict.
The government is represented by Assistant US Attorney Jason S. Gould of the US Criminal Division of the US Attorney’s Office in Newark and Special Assistant US Attorney Kevin DiGregory of FHFA-OIG.
The charges and allegations against Yotagri’s co-defendants contained in the indictment are mere accusations and are presumed innocent until proven guilty.