Another CCPD officer pleads to mortgage fraud

http://www.news-press.com/article/20...e-fraud-scheme

A former Cape Coral Police sergeant Tuesday pleaded guilty to a charge of loan and application fraud, becoming the second officer to plead to a mortgage fraud-related crime in the last two months.

James O’Brien, who was placed on administrative duty with the department last fall when the U.S. Secret Service began investigating him, retired Monday, according to police spokeswoman Connie Barron.

He entered the plea Tuesday and faces up to 30 years in prison and a $1,000,000 fine. He is scheduled to be in court May 11 to formally enter the plea.

According to his plea agreement, O’Brien agreed to purchase 5223 Stratford Court in Cape Coral for an inflated price of $625,000. On Sept. 4, 2007, O’Brien and “L.O.” submitted a fraudulent loan application to JPMorgan Chase, inflating the monthly income for “L.O.” to $20,900. According to the plea agreement, “L.O.”’s entire compensation was about $13,000 and $18,500 for 2006 and 2007, respectively.
According to the documents, the $593,750 loan amount was wired to Oxford Title on Sept. 4, 2007 and included payoff amounts of $105,000 to Noah Enterprises, LLC and $45,000 to New Cape Holdings, LLC.

The application also listed a checking account balance for O’Brien of $72,000, while it was actually $2,405.01, according to the documents. O’Brien inflated rental income and reported a false primary residence.

Three days after closing on the 5223 Stratford Court house, he submitted a loan application for a refinance on his primary residence of 5212 SW 27th Place in Cape Coral, which failed to report the Stratford Court purchase. He made three payments on the Stratford Court property and then walked away, letting it go into foreclosure. He later filed for bankruptcy.

According to court documents in a $4.2 million mortgage fraud scheme five men, involving former Cape Coral Police officer Stephen Petrovich and O’Brien’s brother Ryan, Noah Enterprises, LLC was run by Petrovich and New Cape Holdings, LLC was run by Petrovich’s co-defendants Tyler Forrey and Steven Reese.

Petrovich, Chief Rob Petrovich’s son, Reese, Forrey, Troy Bossert and O’Brien’s brother Ryan O’Brien all have entered their guilty pleas and await sentencing.

According to court documents, from May 2007 to July 2008, Bossert, Forrey and Reese would find real estate for sale by owner, while Forrey, Reese and Petrovich would negotiate the purchase on behalf of third-party buyers at inflated sales prices.

Documents allege the defendants, including Ryan O'Brien, directed third-party buyers to provide false financial information on loan application forms, which falsified U.S. Department of Housing and Urban Development forms during closing. Forrey, Reese, O'Brien and Petrovich would tell buyers to make three mortgage payments and then stop, allowing the properties to go into foreclosure. In total, eight Cape Coral houses were involved in the scheme

I hope no one else at the police dept were invovled in walking away from their homes?

the feds are in no rush, its all a paper trail. The youth of today just dont understand

Do you think the Chief had any knowledge of his sons unlawful conduct? I know that Jr is an adult and he did not live in the same house with the Chief but what do you guys think? I wonder if the Chief ever asked Jr, Son where is all of this money coming from or how is the busness going! This is not a slam the Chief thread but I would like to know what my fellow CCPD's think?

bout' time.

Any direct supervisor should also have known of the problem if they were "doing their job" and not playing the favorites game.

Any direct supervisor should also have known of the problem if they were "doing their job" and not playing the favorites game.

I agree!!

How do they let someone Retire who is under Federal Investigation? What is the City Ordinance on this? If you're convicted of a Felony or Higher (Federal Law Violation) are you allowed to keep your pension? In FRS you're not permitted to do so.

Why do we tax payers have to now share the burden of paying these two criminals the rest of their lives. Pay him back what he paid in and be done with it. How much longer was he allowed to be working and adding to his pension from when the City was first notified of this investigation?

What has happened to others who have been investigated by outside agencies? Were they allowed to continue to receive a paycheck and contribute into the retirement system?

It doesn't make good fiscal sense to allow someone who is a criminal or someone who knows they are going to plea to a crime to continue to reap the benefits of those of you officers who are above reproach, especially when the rest of us are losing homes because of high taxes and unemployment. What a shame on those in power who let the two of them continue to be gainfully employed when there are those of us out here who desperately need jobs and have the honesty and character needed to maintain the publics trust.

I pray for their families that they don't suffer anymore than they already have.

Whats wrong with committing a crime, resigning, going to a cushy country club (Fed Prison) and coming out having city benefits and a pension. Maybe they should surrender their pension and benefits and repay the money they stole. Did they both get a stamped retired ID card and badge also?

Whats wrong with committing a crime, resigning, going to a cushy country club (Fed Prison) and coming out having city benefits and a pension. Maybe they should surrender their pension and benefits and repay the money they stole. Did they both get a stamped retired ID card and badge also?

Not only the retired ID and badge but both had enough time to get their department issued guns when they retired. That's why they were allowed to stay for so long after the feds made the command staff aware of their criminal activity on that Friday the 13th over 2 years ago. They were both permitted to stay long enough to get all the benefits of one who was here with an unblemished career.

What a shame and sickening.