On April 16, Daniel Morar pleaded guilty to one count of conspiracy to commit wire fraud. According to the plea agreement Morar participated in a conspiracy to use “straw buyers” to purchase multiple properties and to receive “cash back” following the closing of the real estate transactions.
Morar is scheduled to be sentenced on July 29th.
Morar, age 41, of Suceava, Romania, was extradicted to the United States from Romania in November 2012.
U.S. Attorney Leonardo said, “Not only has mortgage fraud destroyed property values, lending institutions, and entire neighborhoods in our communities, but it has also resulted in the loss of tax revenues and jobs. Those who engage in mortgage fraud for personal profit at the expense of the public should expect to be held accountable to the fullest extent of the law.”
Morar recruited straw buyers, including one from Romania, who then submitted loan applications to lenders containing false information. The indictment further alleges that Morar, and other conspirators, received cash back at closing while concealing the cash back from lenders. In all, 26 homes went into foreclosure during the scheme, which resulted in at least $6.5 million in losses.
The investigation in this case was conducted by the IRS-Criminal Investigations Division, and the FBI.