N.J. Man Gets More Than 8 Years in Prison For 10-Year Mortgage Fraud Scheme
Summary
The U.S. Department of Justice reports Seth Levine, 53, of Teaneck, N.J., was sentenced to 97 months in prison on March 30 for orchestrating a long-running bank and securities fraud scheme, which led to large-scale losses for financial institutions and investors. According to the DOJ, from 2009 through August 2019, Levine directed a scheme to fraudulently refinance over 70 multifamily properties representing 2,500 apartments he controlled by providing “materially false information” to financial institutions about the rents collected, the number of apartments leased, the expenses, and the true owners of the properties. As a result of the fraudulent refinances, Levine received cash payouts from the lenders, which he and others used for their own enrichment and to continue the fraud scheme. At the time of sentencing, the bank fraud conspiracy resulted in losses to victim lenders of at least $47 million, the DOJ said. At the same time he was ripping off mortgage lenders, Levine also carried out a securities fraud scheme to defraud investors in the multifamily properties.