Multiple Mortgage Fraud Charges in Sarasota

The FBI, the U.S. Attorney, the Federal Deposit Insurance Corp. (FDIC) and the Sarasota County Sheriff announced charges against 14 individuals related to a years-long mortgage fraud investigation last week. The indictment alleges 44 counts, including charges of wire fraud and conspiracy to make false statements, and purportedly relates to 200 mortgages, 65 loans, 50 bank accounts and 22 properties in Sarasota County.

According to the FBI, real estate agent Craig Adams and others lied on financing documents to obtain loans totaling more than $47 million, beginning in late 1997 and early 1998. Federal prosecutors claim that Adams and his associates flipped properties for overstated prices and tricked lenders into making inflated loans.

Law enforcement officials indicated that the investigation is ongoing and that more indictments are expected.

Those charged include:

• Adams, a former Sarasota real estate agent
• Jonathan Glucker, a mortgage broker
• Heather Kabobel, Glucker’s wife and a real estate appraiser
• Lisa Rotolo, a title agent who is reportedly cooperating with investigators
• Richard Bobka, a Sarasota real estate agent
• George Cavallo, George Bobka Sr. and Paula Hornberger — Rich Bobka’s family members — who bought and sold properties

The others named in the indictment were Bonnie Katz, Derek Luther, Jeffrey Berghorn, Joel Streinz, Thomas Brustad and Joseph Dirocco.

Mortgage fraud prosecutions have exploded in the Tampa Bay area in recent years. In 2009, the local U.S. Attorney’s office announced an aggressive initiative against mortgage fraud. This was followed up by the passing of a federal mortgage fraud bill through Congress. Most recently, U.S. Attorney General Eric Holder announced the the U.S. Department of Justice was recommitting to mortgage fraud investigation and prosecution.

The Department of Justice has requested $178 million in its fiscal year 2011 budget to fight mortgage fraud, an increase of over $18.4 million.

Florida is seen as a hotbed of mortgage fraud on the heels of the housing bubble in the early part of this decade. We can expect to see a continued  push of mortgage fraud cases through Tampa’s federal court. Anyone who believes they are a possible target of investigation is best advised to contact an experienced Tampa Bay area criminal defense attorney – one with substantial federal court experience – prior to interview, indictment or arrest.