Man Sentenced 159 Months in Prison for Defrauding Investors of $1.5 Million

Wednesday, January 09, 2019

 

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The mastermind of an extensive mortgage fraud scheme that defrauded homeowners, investors, and financial institutions of nearly $1.5 million was sentenced to over 13 years in federal prison on Tuesday.

Hasan Hussain, 57, was ordered to serve 159 months in prison followed by four years of supervised release.

He was also ordered to pay over $1.4 million in restitution to the victims of his scheme.

Guilty Plea

Hussain, who pled guilty in September 2018, admitted to using various business entities to trick distressed property owners, who were seeking loan modifications, into paying him fees, moving out of their homes, and selling their homes in short sale transactions. 

Hussain further admitted that he convinced lenders to agree to artificially low sale prices for the distressed property owners’ homes by directing other individuals to damage the properties prior to the short sales. 

Hussain, or individuals or businesses associated with him, acquired the properties at reduced prices, and then flipped them to investors at much higher prices. 

During his guilty plea, Hussain admitted that these investors were defrauded of their funds, or good credit, or both when they agreed to purchase properties from Hussain.

Hussain further admitted that he assisted investors to acquire federally backed mortgages through fraudulent applications, ultimately resulting in losses to the lenders or the Federal Housing Administration.

Some of the tactics employed by Hussain as part of the scheme included misuse of identities and cutting and pasting signatures on property deeds and financial documents.

Several individuals directly impacted by Hussain’s schemes appeared in federal court today and personally delivered victim impact statements to the Court.

 

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