Manchester Man Sentenced to Three Years in Federal Prison for Bank Fraud, Money Laundering in Conjunction With Former Somers Residence

Sabir Moghul, a 72-year old Manchester resident, was sentenced to three years of federal prison, followed by three years of supervised release, Wednesday for bank fraud and money laundering charges in conjunction with a pair of mortgages he took out simultaneously on his former Somers home that totaled more than $2.2 million.

According to the United States Attorney for the District of Connecticut, Moghul applied for two different mortgages with two different banks in 2005, using his former residence at 110 Long Hill Dr. in Somers, which was valued at $1.8 million, as collateral. Both of the loans were supposed to have been secured by a first mortgage on the home, but Moghul never informed either lender that he had applied for another mortgage secured by the same property, according to the U.S. Attorney’s office.

Moghul and his wife signed mortgage documents for both loans on the same day in August of 2005. One loan, from Lehman Brothers Bank, totaled $1,080,000; the second loan, from Washington Mutual, totaled $1.2 million. Moghul then used $445,000 from those loans to purchase a medical office building in Hamden, which has since been sold through foreclosure.

After the closings, Lehman Brothers recorded the first mortgage on Moghul’s Somers residence, while Washington Mutual recorded a secondary security interest in the property. Moghul subsequently defaulted on both loans and the home went into foreclosure, resulting in a $1.2 million loss for Washington Mutual.

On June 14, 2010, Moghul waived his right to an indictment and pleaded guilty to one count of bank fraud and one count of money laundering in connection with his fraudulent activity.

Moghul was sentenced by Chief United States District Judge Alvin W. Thompson in Hartford, who ordered that Moghul also pay $1.2 million in restitution. The U.S. Attorney’s office said that Moghul has provided his attorney with $970,474 toward payment of the restitution thus far. The IRS' Criminal Investigation division assisted with the investigation.