Tampa Mortgage Broker Sentenced to Federal Prison for Fraud

Tampa mortgage broker Peter Bakowski was sentenced to 15 years, 8 months in federal prison for false statements related to a mortgage fraud scheme this month. He was also ordered to pay $16.1 million in restitution.

According to court documents filed at the federal courthouse in Tampa, Bakowski, a Florida-licensed mortgage broker, sold the same mortgages to several investors over six years. In order to keep the ponzi-type scheme going, Bakowski would pay returns on the preceding investor’s investments with money from that of subsequent investors.

Over 150 properties and 30 investor- and institutional-victims were involved in the scheme. Many of the investors were reportedly elderly. Bakowski allegedly promised returns between 10 and15 percent.

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.

This most recent initiative, named Operation Stolen Dreams, is operated under the umbrella of the President’s Financial Fraud Enforcement Task Force, launched in November 2009. 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. The FBI has over 3,000 pending mortgage fraud cases, almost double the figure from fiscal year 2008.

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 consistent 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.