Former Watertown Man Sentenced to 70 Months in Prison for Mortgage Fraud

Former Watertown resident Ralph Appolon, 30, was sentenced to 70 moths in prison, followed by two years of supervised release, for his role in a large-scale mortgage fraud ring, U.S. Attorney Carmen M. Ortiz's office announced Wednesday.

U.S. District Judge George A. O'Toole Jr. of the Federal Court in Boston sentenced Appolon late Tuesday. O'Toole's decision also requires Appolon and the other 11 defendents in the case pay a $1.9 million forfeiture order. He was the final defendant sentenced in the conspiracy, which took place from May to September 2005, in which they obtained $10.6 million in mortgage loan proceeds by fraud, Ortiz said.

“We hope to send a clear message to those in the real estate and mortgage industry – if you engage in fraud in order to line your pockets at the expense of others, we will spare no expense investigating and prosecuting you,” Ortiz said.

Appolon took part in a scheme that involved "straw" buyers, to inflate purchase prices and creating false documents about the purchase price, borrower income, employment assets or their intention of living in the property, the release said. The 21 properties involved in the conspiracy were located in South Boston, Dorchester, Jamaica Plain, Quincy, Hyde Park and Cohasset. Nearly all of the properties went into foreclosure, according to the release.

Appolon was convicted on charges related to two properties in South Boston and Dorchester. At trial, the prosecutors presented evidence of his involvement in fraud regarding two additional properties. He was found to have inflated the purchase price of properties that he submitted to lenders by as much as $80,000. Appolon received more than $150,000 from the fraudulent transactions, according to the press release.

In June 2010, five defendants – Eric L. Levine, J. Daniel Lindley, Ernst Appolon, Latoya Haltiwanger and Daniel Appolon – were convicted of conspiracy and wire fraud counts by a federal jury following a seven-week trial, according to the U.S. Attorney's office.

Six other defendants pleaded guilty before the June 2010 trial: Andre Junior Lamerique, Widner Lamarre, Jermaine Blake, Samuel Jean-louis, Jean Noriscat and Elizabeth Son.