A Holbrook man has pleaded guilty to charges including bank fraud and conspiracy to commit money laundering for his involvement in a mortgage fraud scheme announced Pamela Marsh, a US Attorney for the Northern District of Florida.
The scheme also resulted in convictions for two Patchogue residents and one Florida resident of these charges on April 20.
According to the Department of Justice, Louis Mazzella, 41 of Holbrook, purchased Florida homes in the name of his sister and her husband, Paula Smith, 43, and Scott Smith, 48, both of Patchogue. Mortgage loans valued at $1.3 million and $1 million were fraudulently obtained for the purchase of the properties.
Johnathon "David" Sanders, 50 of Santa Rosa Beach, FL, involvement revolves around selling a property to the Smiths at $1.862 million, but instead of putting the money toward a $35,000 debt, the money was diverted to other entities. The DOJ said that a series of transactions following this allowed for the Smiths to make $86,657 in six months, and Sanders received $100,000 while not paying off his mortgage.
Mazella pled guilty to his charges, which included conspiracy to commit bank and mail fraud, bank fraud, mail fraud and conspiracy to commit money laundering. Mazella is scheduled for sentencing on June 12.
Scott Smith's convictions consisted of conspiracy to commit bank and mail fraud, bank fraud, mail fraud and conspiracy to commit money laundering. Paula Smith was convicted with conspiracy to commit bank and mail fraud, and conspiracy to commit money laundering. Sanders was convicted with bank fraud and conspiracy to commit money laundering.
Sentencing for the Smiths and Sanders is scheduled for July 10.