Two main figures in a large mortgage fraud scheme were sentenced Friday to two years in federal prison and ordered to pay more than $2 million in restitution each, the U.S. Attorney’s Office said.
Kevin M. O’Connell, 35, and his father, Kevin D. O’Connell, 62, both of Albany, each admitted previously in U.S. District Court to a scheme involving a group called PB Enterprises.
They were sentenced in Syracuse. The son was also ordered to pay a forfeiture judgment of more than $4.6 million.
The son was employed by the senior O’Connell to assist in a series of transactions that defrauded banks that were offering mortgages in the Albany area, prosecutors said.
The company found inexpensive properties, usually rentals that were for sale, then recruited buyers to purchase the property at higher prices, prosecutors said.
The recruitments came with promises that they would pay no money down and instead receive a check at closing.
The O’Connells then provided false information to lenders, disguising that the purchase prices were inflated and that the purchaser and principals of PB Enterprises were then splitting the excess mortgage money.
Principals of a similar organization, Team Title, admitted to a similar scheme and were sentenced previously.
PB Enterprises principal Michael Crowley is to be sentenced next week in Syracuse and a closing agent used by PB Enterprises and Team Title, attorney Michael G. Bouchard, was convicted in December of conspiracy and bank fraud after a trial. Bouchard and his two paralegals, who admitted to their own conspiracy counts, are scheduled to be sentenced in April.