LAS VEGAS – Mortgage fraud has been in the crosshairs of a nationwide clampdown called Operation Stolen Dreams. As part of this Operation, one of the latest people to be nabbed is
Michael Capodici who has been involved in a mortgage fraud scheme for around 1 year between 2005 August and 2006 May. Capodici and three other people were accused of creating and implementing this mortgage fraud scheme. Capodici was sentenced on Wednesday in Las Vegas to serving a 27 month sentence in prison.
The sentence was handed down by US District Judge Kent Dawson. There is a restitution hearing scheduled for this month as well. After his release, Capodici is to spend the initial 6 months in the confines of his home subject to location monitoring as well.
The indictment against Capodici and the three others was brought on June 2010 because they perpetrated fraudulent real estate transactions worth around $8 million. 12 such fraudulent cases of real estate transactions saw 9 homes in Las Vegas being flipped or put through illegal foreclosure. Flipped real estate transactions results in homes being sold twice within a short time frame. Since the better portions of these homes were sold for upwards of $600,000, the value of this scheme has notched up to $8 million.
Capodici has admitted to some of his wrongdoing. He pleaded guilty in September to 1 count of conspiracy to perpetuate bank fraud. He has also admitted to collaborating with others to include false information on loan applications pertaining to 4 properties.
Kent Dawson dismissed the charges against the co-defendants with Capodici. Michael Blair and Linda Marie Kot, a real estate agent saw the dismissal of charges since the prosecutors requested the same in the name of “interest of justice”. The dismissals happened in September a few days before Capodici pled guilty to the charges.
Operation Stolen Dreams is a multi agency initiative and has resulted in making 485 arrests, more than 330 convictions and recovery of losses worth $11 million. Currently, it is pursuing more than mortgage fraud 3000 cases. The focus on mortgage frauds is due to the fact that it causes a lot of devastation to many people’s lives. This Operation is the government’s biggest mortgage fraud initiative to date.