A federal jury in Brooklyn has found Avraham Tarshish guilty of conspiracy to commit wire fraud and bank fraud, alongside related charges. The verdict is linked to a scheme aimed at defrauding mortgage loan holders, including the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and other lenders. This decision was reached after a 12-day trial overseen by Chief United States District Judge Margo K. Brodie. Tarshish could face up to 30 years in prison when sentenced.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict with Robert Manchak from the Federal Housing Finance Agency's Office of Inspector General, Vicky Vazquez from the U.S. Department of Housing and Urban Development's Office of Inspector General, and Thomas M. Fattorusso from Internal Revenue Service-Criminal Investigation.
“The defendant defrauded taxpayer-funded mortgage loan holders out of millions of dollars and took advantage of programs designed to help distressed property owners in need,” stated Peace. He added that "short sale mortgage fraud not only harms lending institutions, it also depresses real estate values throughout our neighborhoods and prevents community members from gaining fair access to housing."
Manchak commented on how Tarshish's actions undermined processes meant for homeowners facing foreclosure: “The defendant and his co-conspirators corrupted a process meant to assist homeowners facing foreclosure.”
Vazquez noted that “Tarshish and other co-conspirators engaged in a $2.4 million scheme” that involved misrepresenting information to gain fraudulent approvals for short sales.
Fattorusso emphasized the impact on victims: “In this elaborate scheme to prey on people facing foreclosure and manipulating the mortgage loan system, Tarshish’s fraud resulted in a multi-million dollar loss.”
The investigation revealed that between March 2013 and November 2018, Tarshish was part of a conspiracy involving fraudulent short sale transactions through companies he owned or worked with like My Ideal Property Inc., Exclusive Homes Realty Group, Inc., Exclusive Homes NY, LLC, and Homeowners Solutions Group LTD. The scheme included manipulating property values by damaging homes—a practice referred to as making them “pretty”—and misleading lenders about transactions.
Evidence presented during the trial highlighted eleven specific cases where Tarshish defrauded lenders out of more than $2.4 million through fraudulent short sales.
Other defendants who pleaded guilty earlier include Iskyo Aronov from Miami; Michael Konstantinovskiy from Rego Park; Tomer Dafna from Great Neck; and Michael Herskowitz from Brooklyn.
Anyone with information about similar frauds is encouraged to contact the Federal Housing Finance Agency Office of Inspector General Hotline.
Assistant United States Attorneys Shannon C. Jones, John Vagelatos, Joshua B. Dugan, Russell Noble handled prosecution efforts with assistance on forfeiture matters by Tanisha Payne.