A Trumbull man waived his right to indictment and pleaded ‘guilty’ to mortgage fraud Wednesday for his part in a scheme involving dozens of Fairfield County properties.
Mohammed “Tanveer” Islam, 38, pleaded ‘guilty’ to a “straw buyer” conspiracy, in which he recruited others to apply for mortgages in their name, though Islam took over the actually ownership and management of the properties.
According to the U.S. Attorney for Connecticut, between 2006 and 2013, Islam used this scheme to purchase numerous single and multi-family properties, primarily in Bridgeport and Stamford.
As part of the fraud, Islam and others falsified information on the mortgage applications — including income, down payments and fake HUD-1 forms — in order to obtain mortgages from lending companies.
Many of the properties involved in this mortgage fraud scheme ended up in foreclosure or short sales, leaving the lenders on the hook for over $7 million.
Islam faces up to 30 years in prison for one count of conspiracy to commit wire fraud and bank fraud.