Industry News

New York man pleads guilty to real estate loan fraud

Fraudster could be hit with $1 million fine

A New York man pleaded guilty to bank fraud in connection with a mortgage flipping scheme and faces a maximum fine of $1 million plus nearly $250,000 in restitution and 30 years in prison, media accounts said. William O'Keefe was charged by information and plead guilty on Sept. 23 to one count of bank fraud in connection with his role in a mortgage flipping scheme that operated in the Rochester, N.Y., area, court documents reveal. O'Keefe faces a maximum sentence of 30 years in prison along with a fine of $1 million. The plea agreement also states that the court must require restitution of $243,181 to be paid as part of the sentence. O'Keefe is alleged to have bought a house at 67 Waverly Place in Rochester, N.Y., in 1999 for $58,000, obtaining a $57,525 HUD mortgage from Standard Federal Bank.  O'Keefe later defaulted on the mortgage, according to an affidavit executed by the FBI. O'Keefe is accused of submitting false documents to the lender to obtain the loan, including...