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 allegedly false federal tax returns, a loan application reflecting $4,117 per month in employment income, an allegedly untrue verification of employment and earnings statements. 

A legal document charging O’Keefe with one count of bank fraud was filed on Sept. 23 and indicated that the loss to Standard Federal Bank in connection with the fraud described in the Affidavit was $50,425. O’Keefe is scheduled to be sentenced on Dec. 12, media accounts said.


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