Cape chief's son, four others, take mortgage fraud plea deal

Finally! :snicker:

http://www.nbc-2.com/Global/story.asp?S=12076134

Cape chief's son, four others, take mortgage fraud plea deal
Posted: Mar 03, 2010 11:20 AM EST
Updated: Mar 03, 2010 12:54 PM EST

FORT MYERS: Five people, including the son of Cape Coral Police Chief Rob Petrovich, are taking plea deals on mortgage fraud charges.

The five men made a plea agreement with federal prosecutors on six charges, including conspiracy to commit fraud and money laundering.

The five men have been identified as Troy Bossert, Tyler Forrey, Ryan O'Brien, Stephen Petrovich and Steven Reese.

Each defendant could face a maximum of 20 years in prison and a $250,000 fine.

Federal investigators say Bossert, Forrey and Reese would find properties that were for sale by owner and then negotiate a purchase price on behalf of third-party buyers.

According to the charges, they would have those third party buyers provide false information to lenders, including JP Morgan Chase, Bank United, Southpointe Financial Services and Georgia Banking Co., in order to get the loans.

Prosecutors say Forrey and Bossert even created fake cashier's checks, bank statements and W2 forms to con the lenders.

Companies controlled by the defendants would require those companies be paid at closing on the properties, and then funnel the money to themselves.

The final act in the operation, according to prosecutors, is that the group would direct the third-party buyers to make three mortgage payments and then default on the loans.

Court documents show Petrovich, who worked for the Cape Coral Police Department for 11 years, was among the third-party buyers.

He was placed on administrative duty last September and resigned in November 2009.

Properties involved in the scheme, all in Cape Coral, are:

4923 SW 8th Court
5609 Del Rio Court
5223 Stratford Court
130 SW 49th Street
5341 Cobalt Court
2649 SW 29th Avenue
4311 Pelican

So did Chief Petrovich ever fire Jimmy O'Brien, or is he still giving him every opportunity to resign?

Un-f'n-believeable...

Well I didn't see Sgt Obriens name on the news! Why would he resign if he didn't get charged or do anything. Let his friend fry, and wait to see if anything happens to him, which doesn't seem like it will. Good for him.

Well I didn't see Sgt Obriens name on the news! Why would he resign if he didn't get charged or do anything. Let his friend fry, and wait to see if anything happens to him, which doesn't seem like it will. Good for him.

What do you mean good for him. Do you mean to tell me that JB had no idea this was going on in the company. He needs to go and if IA or FDLE does not open an investigation then this system that we enforce is worthless.

Well I didn't see Sgt Obriens name on the news! Why would he resign if he didn't get charged or do anything. Let his friend fry, and wait to see if anything happens to him, which doesn't seem like it will. Good for him.

I'm just confused. His names been linked to the investigation in the news, he was put on administrative leave, and others have said he's been singing like a bird. Didn't the Feds have anything on him? Or did they need his cooperation to prosecute the others?

What really happened here? Jimmys been smoking and where there's smoke there's fire! Who put the fire out?

If he avoided prosecution in a criminal case by co-operating then he definitely shouldn't still be employed as a police officer.

This breaking news is just what Murphy has been waiting for two years now. HIs new chance to finally become chief based upon this news. The hallways are going crazy with this news. Blackberries are blowing up.

In todays episode of "As the Shift Turns"... :shock:

30 years? What does anyone think the timeline will be before he does himself in. I hope he does it over the bridge somewhere so I don't get called to clean up his mess or even waste a report on him. Hours or days. C ya!

http://www.myforeclosurenightmare.co...raud-plea-deal

Properties involved in the scheme, all in Cape Coral, and the defendants connected to each property are:

4923 SW 8th Court (Bossert)
5609 Del Rio Court (Bossert, Petrovich, Forrey, Reese)
5223 Stratford Court (Forrey, Petrovich, Reese)
130 SW 49th Street (Forrey, Reese)
5341 Cobalt Court (Bossert, Forrey)
2649 SW 29th Avenue (Bossert, O’Brien, Petrovich)
4311 Pelican Boulevard (Bossert, Forrey)
1414 NE 14th Avenue (O’Brien, Petrovich, Forrey)
The total amount of the wire transfers for the properties listed above is $4,215,623.42.

How it went down...

http://www.nbc-2.com/global/Story.asp?s=12077695

5609 Del Rio Court Fort Myers (closing date 5/17/07)

Petrovich acted as the buyer in this deal for the purchase of the house at an inflated price of $725,000.

According to court documents, Petrovich filled out a loan application and provided an inflated monthly income and a fake deposit.

Bossert altered a cashier's check to show a deposit from Petrovich to the seller.

Forrey obtained a fake verification of employment and the fraudulent cashier's check to submit to the lender.

The loan for Del Rio Court amounted to $651,500. Once the funds were transferred to the title company, Lee Title Services, the seller directed a wire transfer of $102,060 to New Cape Holdings.

Forrey transferred $62,000 from New Cape Holdings to his personal account. He then transferred $37,000 from his personal account to Petrovich's personal account

Petrovich received a cashier's check for $20,000 from the New Cape Holdings account.

Petrovich made a few payments on the home loan, then quit paying. The house went into foreclosure and Petrovich filed for bankruptcy.

Petrovich used the money from the deal to pay loans, his legal fees and other expenditures.


5223 Stratford Court, Cape Coral (closing date September 4, 2007)

Petrovich brought the buyer to Forrey and Reese.

Forrey and Reese found a home for sale by owner and told the owner the buyer wanted to purchase the home at an inflated price because the buyer wanted to use some of the extra money to pay for improvements.

The owner agreed to sell for $625,000.

The loan application had an inflated monthly income, inflated balance in the checking account and inflated rental income. The buyer received a loan in the amount of $593,750.

The $593,750 was wired to the title company, Oxford Title, for closing on September 4, 2007.

The title company wired $105,000 to Noah Enterprises (owned by Petrovich) and $34,246.53 to New Cape Holdings, LLC.

Reese withdrew $17,500 on September 6, 2007 from the New Cape Holdings account.

Forrey transferred $11,213 from the New Cape Holdings account to Petrovich's personal account.

The buyer received $90,000 from Noah Enterprises.

The buyer made three mortgage payments and then stopped. The house went into foreclosure.


130 SW 49th Street, Cape Coral (closing date December 19, 2007)

A mortgage broker with Franklin, Morgan and Chase brought a buyer to the table.

Forrey and Reese told the seller the sales price needed to be inflated so the buyer could put in a third bedroom and a pool.

The buyer agreed to sell the house for $385,000.

Court records indicate the loan application included false employment, inflated monthly income and an inflated checking account balance.

The bank gave the buyer a loan in the amount of $385,000.

The money was wired to the title company, Oxford Title, for closing on December 19, 2007.

A check for $97,543.16 was written to New Cape Holdings.

The buyer walked from the house and it went into foreclosure.


5341 Cobalt Court, Cape Coral (closing February 29, 2008)

Forrey and Reese found the buyer and a mortgage broker for Franklin, Morgan and Chase brought a seller to the table.

The sales price was inflated to $725,000.

The loan application included inflated monthly income and a false deposit.

The loan was written for $616,250, which was wired to Oxford Title for closing February 29, 2008.

Douglas Holdings (Forrey's company) received $166,700 from the transaction.

Forrey paid the buyer $117,200.
The buyer attempted to short sale the house, but it went into foreclosure.


2649 SW 29th Avenue, Cape Coral (Closing March 7, 2008)

O'Brien contacted the owners after seeing their 'for sale by owner' sign. He said he wanted to buy their house for the listed price.

Bossert and O'Brien went to the seller's home and submitted a sales contract for $355,000.

Bossert represented himself as a mortgage broker with Franklin, Morgan and Chase.

The sellers signed the HUD settlement statement for a sales price of $355,000. After closing, defendants submitted a second fraudulent HUD Settlement statement with a sales price of $725,000.

Loan documents were based on the inflated sales price of $725,000.

The loan application contained inaccurate designation as primary residence, inflated monthly income and false deposit. A loan was acquired in the amount of $580,000.

The funds were wired to Oxford Title for closing on March 7, 2008.

Money was wired to Four Forty Two Holdings for $178,480.60. This amount was listed on the HUD settlement as a pay off for an existing liability.

Court documents say Petrovich and O'Brien split the $178,480.60.

A cashier's check from Four Forty Two Holdings was written to O'Brien in the amount of $39,200.

O'Brien made a few payments on the home, then attempted a short sale. It is now in foreclosure.


1414 NE 14th Ave, Cape Coral (Closing July 10, 2008)

In this transaction, Petrovich and O'Brien directed the cash out deal.

Bossert told the sellers the buyer wanted to inflate the purchase price so he could pay off a loan. The homeowner agreed to sell his home for $290,000.

The loan application included an inaccurate designation of primary residence and an inflated monthly income.

The buyer received a loan in the amount of $261,000, which was wired to Oxford Title for closing on July 10, 2008.

Oxford Title wired $115,133.81 to Four Forty Two Holdings (Petrovich and O'Brien).

O'Brien endorsed checks to the buyer in the amount of $45,000 and to Forrey for $15,000. Petrovich and O'Brien split the balance of the funds.


4923 SW 8th Court, Cape Coral (closing May 4, 2007)

In this case, Bossert was directing the cash-out deal.

The homeowner agreed to sell the home for an inflated sales price of $763,000.

The loan application included a fake deposit, false claim of primary residence and inflated income.

Bossert was given a loan in the amount of $724,850, which was wired to Lee Title Services for closing on May 4, 2007.

Lee Title wired $179,915.45 to ACI Holdings LLC (Bossert is a signatory for its bank accounts) and $41,436.94 to Bossert's personal account.

Bossert wrote a check to Suncoast Schools credit union for $17,933.03 to pay off his credit card debt.

Bossert also wrote a check for $88,638.41 to the US Treasury for prior tax liabilities.

Bossert made three mortgage payments, then stopped paying. The house went into foreclosure.

4311 Pelican Blvd, Cape Coral (closed June 18, 2008)

Court documents say Forrey directed this cash-out deal for a friend.

Forrey and Bossert found the house, which was for sale by owner.

The sellers signed a HUD settlement for the purchase price of $248,000.

After closing, Forrey switched out the genuine HUD settlement statement for a fraudulent HUD settlement statement with a purchase price of $520,000.

The loan application included false employment information, inflated monthly income, misrepresented primary residence and false deposit.

The buyer received a loan in the amount of $416,000 which was wired to Oxford Title on June 18, 2008.

Oxford Title wired $153,725.34 to Statewide Investments (Bossert).

Bossert withdrew $28,500 and $7,600 from the account.

Bossert paid $28,500 to Forrey.

The sellers didn't learn about the inflated sales price until their accountant contacted them a few months later.