Crime & Safety

Manchester Woman Indicted in Mortgage Fraud Scheme

Federal authorities said Manchester resident Carmelinda Marotta partook in mail fraud scheme.

Federal officials have indicted three people, including a Manchester woman, in a mortgage fraud case alleging that the suspects used straw borrowers and fake applications toward the purchase of 40 homes in Connecticut.

A federal grand jury in Hartford issued a seven-count indictment against Carmelinda "Linda" Marotta, of Manchester, and Newington residents Filippos "Filip" Milios and Malgorzata "Margaret" Karas-Golka, accusing all three of conspiracy and fraud offenses, according to a news release. 

According to the indictment, unsealed Friday, all three suspects defrauded banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties that both Karas-Golka, 45, and Milios, 54, had owned. The scheming went on from June 2005 to at least Nov. 2008, officials said.

The indictment alleges that the mortgage fraud conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms in connection with the purchase of more than 40 houses in Hartford, New Haven and Middlesex counties, the government said.

"As part of the scheme, Milios, Marotta, 44, and others recruited or identified borrowers to purchase properties from Milios, Karas-Golka and their co-conspirators," officials said. "Milios is alleged to have made the down payments on behalf of the borrowers recruited to purchase the properties he and his co-conspirators were selling."

Officials said Milios paid money to borrowers, mortgage brokers, and recruiters, including Marotta, which was not disclosed to the mortgage lenders. Milios and Marotta also concealed from the lenders Marotta’s involvement in several fraudulent transactions and her receipt of a portion of the seller’s proceeds.

All three suspects are charged with one count of conspiracy to commit mail and bank fraud, as well as separate counts of bank fraud. The all appeared before U.S. Magistrate Judge Thomas P. Smith in Hartford and pleaded not guilty to the charges. They remain free on separate bonds.

On August 6, 2013, Serrano waived his right to indictment and pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.  

Read more information here.


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