4 indicted in 16 property Detroit fraud scheme

In the following press release it was announced by Acting United States Attorney Terrence Berg and Andrew G. Arena, SpecialAgent-In-Charge of the Federal Bureau of Investigation in Detroit that a seventeen-count indictment charging four defendants with conspiracy,bank fraud, and mail fraud was returned by a federal grand jury on August 20, 2008.

Accordingto the indictment, Hassan Nagi, 30, of Dearborn Heights, Ali Haidous,24, of Dearborn, Safi Bzeih, 35, of Dearborn, and Hussein Aoun, 23, ofDearborn Heights conspired to secure fraudulent mortgages on 16properties between April 2005 and April 2008. The value of themortgages totaled $1.9 million. The properties were located in Detroit,Dearborn, and Dearborn Heights. The loans were issued by variousnational financial institutions, including Countrywide Bank, WashingtonMutual, Fifth Third Bank, IndyMac Federal Bank, Net Bank, and Sun Trustbank.

The indictment alleges Nagi worked as a mortgagebroker and was responsible for submitting false and fraudulentapplications to obtain the mortgages. Haidous was a real estateappraiser who provided fraudulent appraisals for the properties. Bzeihand Aoun recruited sellers and “straw buyers” for the properties.

Accordingto the indictment, after the defendants identified a willing seller ofa property, Nagi secured financing for a “straw buyer.” False incomeand employment information was provided to the lender using fraudulentW-2 forms. In support of each loan, Nagi also submitted an inflatedappraisal, created by Haidous. After the inflated mortgage was fundedat closing, the seller received sufficient funds to pay off anyexisting mortgage as well as a “bonus” for participating in themortgage fraud scheme. The remainder of the proceeds from the inflatedmortgage were shared between the defendants and straw buyer.

ActingUnited States Attorney Berg said, ?Mortgage fraud is a serious andeconomically damaging crime because it harms both our financialinstitutions as well as the integrity of the market. These are notvictimless crimes and we will do all we can to ensure that those whocommit fraud are brought to justice.?

“We remain dedicated to preventing mortgage fraud and putting unrelenting pressure on these criminal groups,” Arena said.

An indictment is a charging document and not evidence of guilt. Each and every defendant is presumed to be innocent.

Nagi,Haidous, and Bzeih are expected to appear in federal court beforeMagistrate Judge Virginia Morgan at 1:00 p.m. on Thursday, August 21,for their initial appearances and arraignment on the indictment. Aounis a fugitive in Lebanon.

The case is being prosecuted by Assistant U.S. Attorney Leonid Feller.

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