Attorney Sentenced In New London County Mortgage Fraud

A 48-year-old attorney and mortgage broker will serve 27 months in prison for his role in a New London County mortgage fraud scheme.

David B. Fein, United States Attorney for the District of Connecticut, announced today that Maurizio Lancia of Trumbull received the sentence in Hartford. Senior U.S. District Judge Alfred V. Covello also ordered Lancia to serve two years of supervised release.

Lancia was accused of taking part in the plot by running the Law Office of Maurizio D. Lancia and serving as the licensed mortgage broker operating Royal Financial Services, LLC. Between 2004 and 2007, Lancia - along with Jose Guzman, William Athan, Stacey Petro, and others - used Royal Financial Services and other property management and home improvement companies to arrange the purchase of real estate, usually residential properties, via funding obtained from mortgage companies and originators. False information was submitted regarding income, employment, and other factors as well as the borrowers' intention to make the homes their primary residence.

"The borrowers, who typically were individuals who had good credit but were of modest means with low levels of income, were compensated for participating in the scheme," said Fein.

Lancia, Guzman, and Athan established the company Broad Street Investment Group at 349-351 Broad Street in 2004 with the intention of buying and selling properties. Royal Financial Services and the company First Source Mortgage Solutions, Inc. both operated out of this location. Lancia served as a mortgage broker and closing agent on fraudulent real estate transactions, while Guzman worked as a loan officer to acquire funding from various mortgage companies to establish the mortgages.       

"As a mortgage broker, [Lancia] secured a number of mortgages through Royal Financial Services based on materially false information, and as an attorney, he represented the seller on a number of the fraudulent transactions," said Fein. "For many of the fraudulent transactions, he acted a both the mortgage attorney and as the seller’s attorney."

Investigators believe over 200 fraudulent mortgages were funded in this way, and that lenders lost over $3.6 million as a result of foreclosures. Lancia collected almost $100,000 in fees and commissions during the scheme.        

On Oct. 18, Lancia pleaded guilty to one count of wire fraud. Sixteen people - including Athan, Guzman, and Petro - have pleaded guilty to various charges related to the fraud.       

The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General.  The case is being prosecuted by Assistant United States Attorney Michael S. McGarry and David T. Huang.        

Fein also encouraged citizens to report any suspected mortgage fraud activity to the Connecticut Mortgage Fraud Task Force by calling 203-333-3512 or by sending an e-mail to ctmortgagefraud@ic.fbi.gov. The task force includes representatives from the U.S. Attorney’s Office, FBI, Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development, Office of Inspector General, Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.        

Investigators also coordinated with the President’s Financial Fraud Enforcement Task Force, which includes representatives from several federal agencies, regulatory authorities, inspectors general, and state and local law enforcement agencies.

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