Tue. Oct 19th, 2021

A disbarred law firm-turned mortgage loan broker has pleaded guilty to stealing practically $5 million in refinancing loans, using it to buy dozens of watches and piles of jewellery, rather of having to pay off his clients’ primary mortgages. 

Brent Kaufman, 50, of Commack, N.Y., admitted that on a lot of occasions between 2016 and 2019, he shown his own lender account variety on paperwork submitted to new loan providers informing them in which to deliver the income.

Ordinarily, the income would be wired to the homeowner’s primary financial institution to pay off their current personal loan. As a final result, Kaufman’s consumers were unknowingly still left with two home loans on their residences. In quite a few conditions, the money institutions associated moved to foreclose on the innocent debtors, while no a person in the long run dropped their property, a particular person acquainted with the matter reported.

“This is a vintage case of greed beating sincere small business practices, as Mr. Kaufman took gain of his obtain to clients’ cash to enrich his individual life style,” said Darnell Edwards of the United States Postal Inspection Services. “His actions still left lots of in money spoil, keeping two home loans and going through the danger of foreclosure.”

Prosecutors say Kaufman had been functioning as a mortgage loan broker even though he had no license.  Kaufman faces up to 30 years in jail as properly as $1 million in fines. Prosecutors have also moved to have the dozens of watches and items of jewellery seized from Kaufman’s property forfeited to the govt.

In an electronic mail, Kaufman’s legal professional explained his shopper “regrets his position in the offense,” and “looks forward to going on to the future chapter in his everyday living.”

In accordance to civil lawsuits submitted by quite a few of the loan companies who had been defrauded in the scenario, Kaufman’s shoppers appeared to be mostly new immigrants with residences in Very long Island and Queens. 

In some conditions, Kaufman would use some of the $4.7 million he had pocketed to proceed making home finance loan payments on the homeowners’ initial loans, or even shell out them off, to steer clear of detection, prosecutors said. In all, prosecutors say Kaufman saved about $2.5 million for himself.

As soon as a law firm, Kaufman was sentenced to 18 months in jail and disbarred in 2000 for his role in a bankruptcy fraud scenario, data present.