Cheddi Goberdhan acted as a closing attorney for straw buyers who ultimately walked away from overpriced mortgaged. Now he’ll be spending five years in jail, losing his law license and paying $4.7 million in restitution. The scheme was complicated, sometimes involving multiple straw buyer transactions designed to drive up the value of the home so that a larger mortgage could be taken out on it. Goberdhan and the company arranging the straw purchases, GuyAmerican Funding Corp, kept most of the mortgage money, using a portion of it to pay off the straw buyers, who then walked away. They got most of their deals from distressed property owners eager to get out from under their mortgages.
In total, the mortgage fraud resulted in $23 million in losses. Six GuyAmerican employees have already pled guilty.
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