Newark, NJ \u2013 Tuesday, December 17, 2019 – A Bronx, New York, man\ntoday admitted participating in a conspiracy to carry out a $3.5 million scheme\nto use bogus information and simultaneous loan applications at multiple banks\nto fraudulently obtain home equity lines of credit, a practice known as\n\u201cshotgunning,\u201d U.S. Attorney Craig Carpenito announced.<\/p>\n\n\n\n

Saoud \u201cSam\u201d Rihan, 59, pleaded guilty before U.S. District Judge\nJohn Michael Vazquez to an indictment charging him with one count of conspiracy\nto commit bank fraud.<\/p>\n\n\n\n

According to documents filed in the case and statements made in\ncourt:<\/p>\n\n\n\n

Rihan was a business partner of Simon Curanaj, 65, of Yonkers,\nNew York. From 2012 through January 2014, Rihan, Curanaj, and others conspired\nto fraudulently obtain multiple home equity lines of credit (HELOC) from banks\non residential properties in New Jersey and New York.<\/p>\n\n\n\n

In 2013, Rihan and Curanaj executed a deed to transfer ownership\nof a Bronx property to people identified in the complaint as \u201cIndividual 1\u201d and\n\u201cIndividual 2,\u201d neither of whom lived at the property. Rihan offered\nIndividuals 1 and 2 $10,000 cash payments for acting as straw borrowers but\nnever paid them. Rihan and Curanaj then applied for three HELOCs valued at\n$750,000 from multiple banks in the name of Individual 2.<\/p>\n\n\n\n

Rihan and Curanaj hid the fact that the same Bronx property was\npledged as collateral in all three applications. The applications also\nfraudulently inflated Individual 2\u2019s income. In addition, at the time the\napplications were made, the value of the Bronx property, which was encumbered\nby a mortgage, was far less than the amount of the HELOC loans that Rihan and\nthe real estate broker applied for.<\/p>\n\n\n\n

The victim banks eventually issued loans to Individual 2 in\nexcess of $370,000. After the victim banks funded the HELOCs and deposited\nmoney into Individual 2\u2019s bank accounts, Individual 2 disbursed almost all of\nthe funds to Rihan, Curanaj, and others. In 2014, Individual 2 defaulted on all\nthe HELOC loans.
\nThe overall scheme resulted in over $3.5 million in losses to the victim banks.<\/p>\n\n\n\n

Rihan faces a maximum potential penalty of 30 years in prison\nand a $1 million fine, or twice the gross gain or loss from the offense.\nSentencing is scheduled for March 25, 2020.<\/p>\n\n\n\n

Curanaj previously pleaded guilty to his role in the scheme and\nis awaiting sentencing.<\/p>\n\n\n\n

U.S. Attorney Carpenito credited special agents of the Federal\nHousing Finance Agency \u2013 Office of Inspector General (FHFA-OIG), under the\ndirection of Special Agent in Charge Robert Manchak in Newark; and special\nagents of the FBI, under the direction Special Agent in Charge Gregory W. Ehrie\nin Newark, with the investigation leading to today\u2019s guilty plea.
\n
\nThe government is represented by Assistant U.S. Attorney Jason S. Gould of the\nU.S. Attorney\u2019s Office Criminal Division in Newark and Special Assistant U.S.\nAttorney Kevin DiGregory of the FHFA-OIG.<\/p>\n\n\n\n

Defense Counsel: Jeffrey\nGarrigan Esq., Jersey City, New Jersey<\/p>\n","protected":false},"excerpt":{"rendered":"

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