Property finance loan broker pleads responsible to stealing just about $5 million in refinancing financial loans, utilizing revenue to purchase watches and jewelry

A disbarred law firm-turned property finance loan broker has pleaded responsible to thieving nearly $5 million in refinancing loans, utilizing it to invest in dozens of watches and piles of jewellery, in its place of paying out off his clients’ first home loans. 

Brent Kaufman, 50, of Commack, N.Y., admitted that on quite a few events involving 2016 and 2019, he stated his own lender account amount on paperwork submitted to new lenders informing them where to deliver the revenue.

Ordinarily, the revenue would be wired to the homeowner’s authentic loan company to pay back off their present personal loan. As a result, Kaufman’s clients ended up unknowingly remaining with two home loans on their residences. In a number of instances, the fiscal establishments associated moved to foreclose on the harmless debtors, though no just one finally lost their residence, a human being familiar with the matter mentioned.

“This is a common circumstance of greed overcoming honest small business techniques, as Mr. Kaufman took gain of his obtain to clients’ funds to enrich his personal way of life,” reported Darnell Edwards of the United States Postal Inspection Service. “His steps still left several in economical ruin, keeping two mortgages and facing the risk of foreclosure.”

Prosecutors say Kaufman had been operating as a property finance loan broker even even though he had no license.  Kaufman faces up to 30 yrs in jail as effectively as $1 million in fines. Prosecutors have also moved to have the dozens of watches and parts of jewelry seized from Kaufman’s dwelling forfeited to the federal government.

In an email, Kaufman’s lawyer claimed his shopper “regrets his function in the offense,” and “looks ahead to moving on to the future chapter in his lifestyle.”

According to civil lawsuits filed by a number of of the lenders who have been defrauded in the circumstance, Kaufman’s shoppers appeared to be primarily new immigrants with homes in Extensive Island and Queens. 

In some circumstances, Kaufman would use some of the $4.7 million he had pocketed to keep on making mortgage payments on the homeowners’ initial loans, or even pay out them off, to avoid detection, prosecutors said. In all, prosecutors say Kaufman stored approximately $2.5 million for himself.

When a attorney, Kaufman was sentenced to 18 months in jail and disbarred in 2000 for his function in a personal bankruptcy fraud situation, records exhibit.

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