Trumbull Attorney Guilty in Alleged Mortgage Fraud

Attorney John Bryk, 61, has pleaded guilty to one count of conspiracy to make a false statement in a federal Department of Housing and Urban Development transactio, the U.S. attorney for the District of Connecticut said Friday.

Bryk entered the plea before U.S. District Judge Janet C. Hall in Bridgeport, prosecutors said. He faces up to five years in prison when sentenced July 1.

Prosecutors said Bryk represented Heather Bliss of Westport and her husband on the purchase of a Westport property would be financed by a $350,000 primary mortgage from Argent Mortgages, "as well as a seller-financed mortgage for the remainder of the purchase price."

"Bryk was subsequently informed that Argent Mortgages would not finance the Saugatuck Avenue property purchase if any other loans were taken on the property," the press release states. "However, Bryk was asked to make the deal go through as planned. Bryk then prepared the HUD-1 [form] for the closing on the purchase, which falsely indicated that no other loans were used to purchase the property."   

A U.S. Department of Housing and Urban Development Uniform Settlement Statement (“HUD-1”) is an official financial statement reflecting how money is to be distributed at real estate closing, the release states.

On July 30, 2010, Heather Bliss pleaded guilty to one count of conspiracy to commit wire fraud stemming from her participation in this and other fraudulent mortgage transactions, according to a press release. She awaits sentencing.

The case is being prosecuted by Assistant United States Attorney Rahul Kale.

In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation Division; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.

Citizens can report mortgage fraud activity by contacting the Connecticut Mortgage Fraud Task Force at 203-333-3512, or by sending an email to ctmortgagefraud@ic.fbi.gov.