$2M Scheme: 6 Steal Property Deeds, Obtain Fraudulent Loans In New Rochelle, Yonkers, DA Says

M Scheme: 6 Steal Property Deeds, Obtain Fraudulent Loans In New Rochelle, Yonkers, DA Says

The six defendants involved in the scheme, including three Westchester residents and a Long Island man, were arrested and arraigned in late June for their role in a scheme that allegedly defrauded homeowners in Yonkers and New Rochelle, the Westchester County District Attorney’s Office announced on Monday, July 3. 

According to officials, the scheme targeted one residence in Yonkers and two in New Rochelle valued at $2.5 million that were facing bankruptcy or foreclosure. 

When the owners of two of these properties signed the deeds over to the defendants, they believed they would be receiving mortgage assistance. These homeowners were facing eviction or were pushed out of their homes. 

The third property, already in bankruptcy proceedings, was bought in a short sale, after which two of the defendants allegedly moved in and used the home as their primary residence, officials said.

After acquiring the properties, the defendants allegedly forged financial statements and filed false tax documents to obtain $1.5 million in short-term “fix and flip” loans on the residences before defaulting on their mortgages. They also were able to obtain a $500,000 COVID-19 relief small business loan. 

The defendants, as well as some of their alleged crimes, were listed as:

Licensed real estate broker and New Rochelle resident Marcia Campbell, age 61, who was charged with: 

  • Identifying financially distressed properties and promising mortgage assistance to homeowners to convince them to sign their property deeds to Campal Corp., which she owned to hide her identity in transactions;
  • Committing tax fraud between 2019 and 2022 with the intent to evade taxes for two more corporations under her name, Extreme Realty Associates and Extreme Taxes Inc., as well as Campal Corp; 

Licensed real estate salesperson and New Rochelle resident Fred Campbell, age 64, who was charged with: 

  • Acting as a straw purchaser and loan guarantor for the purchasing of the properties, as well as using corporate entities under his name to facilitate fraudulent transactions using forged statements to prove liquidity with lenders, and committing tax fraud;

Licensed attorney and New York City resident Anthony Chilliest, age 53, who was charged with:

  • Falsely representing himself as an attorney to a homeowner;
  • Providing forged documents to title insurance companies and lenders to facilitate loan acquisitions;
  • Committing tax fraud with the intent to avoid paying taxes between 2019 and 2022;

Elmsford resident Gerald Smith, age 48, who was charged with: 

  • Functioning as a loan broker and communicating with lenders to further the acquisition of the proceeds from the loans, as well as making false entries in the applications for these loans;
  • Committing tax fraud between 2020 and 2021. 

Nassau County resident Wayne Green, age 48, of Lynbrook, who was charged with: 

  • Working with Marcia Campbell to purchase the properties to eventually acquire the loans;
  • Helping to submit false documents to the Small Business Administration; 
  • Committing tax fraud between 2020 and 2021.

Bronx resident Frank Palmer, age 66, who was charged with: 

  • Acting as a straw purchaser and falsely representing himself to homeowners and lenders as the only owner of Campal Corp.;
  • Filing fake federal tax returns for Campal Corp. to get a $500,000 Economic Impact Disaster Relief Loan from the Small Business Administration;
  • Committing tax fraud with Marcia Campbell in 2022.

Additionally, Campal Corp. was charged as a defendant for allegedly: 

  • Functioning as a straw purchaser and being used as a buyer of record for fraudulent real estate transactions, as well as applying for a loan from the Small Business Administration. 
  • Hiding the identities of several of the defendants in these fraudulent transactions; 
  • Sending eviction notices to the homeowners who were staying in one of the New Rochelle properties;
  • Committing tax fraud in 2022.

All six of the defendants face numerous charges, including conspiracy, grand larceny, criminal tax fraud, and falsifying business records charges, among several others. 

Bail has been set for Marcia and Frank Campbell, Chilliest, Smith, and Palmer, officials said. 

Westchester County District Attorney Miriam Rocah said schemes such as this one target “the most vulnerable,” and can have “lasting housing and financial impacts to families.”

Any other victims of deed theft or fraud can submit a complaint to the DA’s Office at 914-995-TIPS (8477). 

to follow Daily Voice

New Rochelle

and receive free news updates.

Source link

Scroll to Top