Three From L.I. Arrested In $1 Million Mortgage Fraud Scheme

Three Long Islanders -- one the alleged ringleader -- are among nine that were indicted Monday for a mortgage fraud scheme. According to Attorney General Eric Schneiderman, the scheme spanned two boroughs of New York City and resulted in more than $1 million in fraudulent gains.

Among those arrested were Janelle Defreitas, 37, of Uniondale; Lester Wayne Mackey, 63, of Wyandanch; and Darren Downes, 36, of Baldwin. Also charged were Raymond McKayle, 53, of East Flatbush; Jaipaul Persaud, 54, of Fresh Meadows; Roxanne Harmon, 51, of Jamaica; June Whyte, 54, of Ozone Park; Rickley Gregoire, 33, of Brooklyn; and Paula Blackwood-Sambury, 50, of Cambria Heights.

The nine were charged with many crimes, including money laundering, grand larceny, residential mortgage fraud, offering false instruments for filing, conspiracy and related charges.

"Our investigation uncovered a brazen and elaborate scheme to defraud mortgage lenders and steal over $1 million," said Schneiderman. "We have zero tolerance for anyone who tries to cheat the system — and we won’t hesitate to bring them to justice."

According to the Attorney General, from 2012 to 2015, Defreitas, McKayle, Mackey, and Persaud allegedly engaged in a scheme to defraud mortgage lenders and steal mortgage proceeds. In the course of the scheme, they allegedly used sham corporations to acquire titles to four properties in Brooklyn and Queens, and then allegedly conspired with Downes, Harmon, Whyte, Gregoire, and Blackwood-Sambury to obtain mortgages to “buy” the properties in manufactured resales. They allegedly concealed the fact that the buyers couldn’t afford the homes by submitting fraudulent mortgage applications showing grossly inflated incomes from fake jobs, bank accounts with fabricated balances and other false information.

Prosecutors say that Defreitas acquired the titles two locations in Brooklyn and two in Queens through shell corporations that included West North Capital, Inc., Housing Enhancement and Lifetime Planning (“HELP”), and others. Defreitas allegedly used Downes, Whyte, Gregoire and Blackwood-Sambury to “purchase” the acquired real estate from herself and her companies at significantly higher prices.

To facilitate the sales, it is alleged that McKayle, a licensed mortgage loan originator, would direct Defreitas on how to alter and falsify information in loan applications so that unqualified buyers would be approved for loans they could not afford.

In certain instances, it is alleged, the defendants would acquire properties via a short-sale. According to prosecutors, Harmon, who is an investigator for the New York City Department of Investigation, owed approximately $512,000 on her mortgaged property. Harmon and Defreitas allegedly conspired to fraudulently apply for a short-sale via Harmon’s mortgage holder. Defreitas allegedly concealed her involvement by purporting to represent Harmon through one of the shell companies.

Eventually, based on Harmon’s supposed hardship, the mortgage company agreed to a $100,000 short sale to West North Capital – which was also owned by Defreitas. As a result of alleged misrepresentations made by Harmon and Defreitas to the mortgage company, Harmon’s debt was reduced by approximately $412,000, and Defreitas owned the property without a mortgage lien. A few months later, Defreitas and McKayle allegedly submitted a fraudulent mortgage application so that defendant June Whyte, Harmon’s sister-in-law, could “buy” the property from West North Capital. Whyte’s fraudulent application, including fake paystubs and W-2 statements created by Persaud, was approved and West North – and Defreitas – collected almost $400,000 in mortgage loan proceeds.

The investigation originated from a 2014 complaint to the Brooklyn District Attorney’s Real Estate Fraud Unit, as well as an automobile insurance fraud case handled by the New York State Attorney General’s Office involving Defreitas and Downes, for which Downes is currently serving time in jail.

Photo: Shutterstock