by The Compliance Exchange on September 21, 2012
Southeast Queens real estate magnate Edul Ahmad has reached a tentative plea agreement with federal investigators on charges that he orchestrated a $50 million mortgage fraud scheme, according to documents filed Wednesday by the office of Eastern District U.S. Attorney Loretta Lynch.
The plea agreement could have political implications. Queens Congressman Gregory Meeks, a close associate of Mr. Ahmad, has drawn scrutiny—and a House Ethics Committee investigation—for failing to disclose a $40,000 loan from Mr. Ahmad. Democratic Senate Minority Leader John Sampson is also considered a close associate of the real estate player.
Mr. Ahmad had been charged with luring immigrants, many from Guyana, into purchasing homes financed with subprime mortgages, inflating the values of the properties and concealing his identity in the transactions. “He submitted false loan applications and supporting documents to make borrowers of mortgage loans appear to be more creditworthy than they actually were,” the government alleged, stating that Mr. Ahmad, “essentially prevented the financial institutions from discovering that his fees exceeded those permitted by them. Many of the homes involved were ultimately lost in foreclosures because the borrowers could not afford to make their mortgage payments.”
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