Ed Ahmad indicted on US$50M bank fraud
– faces maximum of 30 years if convicted
A federal grand jury in Brooklyn, USA, has returned an indictment charging Guyanese businessman Edul Ahmad with participating in a mortgage fraud scheme, in which he and others fraudulently obtained more than US$50 million in loans.
The indictment alleges the defendant conspired to defraud financial institutions, including Bank of New York, JP Morgan Chase, Citibank, N.A., Countrywide Financial, Flushing Savings Bank, Fremont Investment and Loan, HSBC Bank USA, N.A., IndyMac Bank, One West Bank, U.S. Bank, and Wells Fargo & Company, and wholesale mortgage lenders, including New Century Mortgage Corporation and Ocwen Financial Corporation.
Ahmad is charged with one count of conspiracy to commit bank and wire fraud and nine counts of bank fraud.
The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Janice K. Fedarcyk, Assistant Director in Charge of the Federal Bureau of Investigation, New York Field Office; and Jon T. Rymer, Inspector General, Federal Deposit Insurance Corporation.
The defendant’s arraignment is scheduled to take place before United States Magistrate Judge Andrew L. Carter, Jr., at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The case has been assigned to United States District Judge Dora L. Irizarry, who had presided over the trial of Guyanese drug dealer Shaheed ‘Roger’ Khan in 2009.
As detailed in the indictment, from 1995 to 2009, Ahmad was a licensed real estate broker in the state of New York and also acted as a loan officer. As part of the alleged scheme, he submitted false loan applications and supporting documents to make borrowers of mortgage loans appear to be more creditworthy than they actually were.
The defendant allegedly did that in order to profit from real estate commissions and loan fees generated by the transactions.
Additionally, at the closings of these deals, Ahmad is said to have prepared and submitted documents that falsely misrepresented whether the borrowers actually made any payments to the sellers and understated the amounts of Ahmad’s real estate commissions and loan fees.
In doing so, Ahmad essentially prevented the financial institutions from discovering that his fees exceeded those permitted by them. Many of the homes involved were ultimately lost in foreclosures because the borrowers could not afford to make their mortgage payments.
“Mortgage loans allow millions of Americans to turn the dream of home ownership into reality,” stated United States Attorney Lynch.
“The system must be based on the accuracy of its information and the integrity of its members. The defendant allegedly brought neither to the table, abusing the trust of the financial institutions who relied upon him. We will vigorously prosecute licensed professionals who abuse their positions and harm our communities by undermining financial and real estate markets through mortgage fraud.”
FBI Assistant Director in Charge Fedarcyk stated, “By repeatedly filing false mortgage applications, Ahmad allegedly committed serial bank fraud. Such falsehoods are not merely lies, they were the modus operandi in essentially stealing almost $50 million. The FBI remains committed to investigating mortgage fraud.”
FDIC Inspector General Rymer stated, “The Federal Deposit Insurance Corporation, Office of Inspector General (OIG), is pleased to join our law enforcement colleagues in announcing the indictment of Mr. Ahmad for his alleged role in this multi-million dollar bank fraud. It is especially important to investigate and prosecute cases where trusted professionals abuse their positions to undermine the integrity of the financial services industry. We are committed to preventing such threats to the safety and soundness of FDIC-insured banks throughout the country.”
If convicted, the defendant faces a maximum term of imprisonment of 30 years.
The United States government’s case is being prosecuted by Assistant US Attorney Alexander A. Solomon.
Ahmad, who was arrested a month ago when he tried to board a Delta Airlines flight to Guyana, is on $2.5M bail in addition to being electronically monitored.
A subsequent application to the court to be allowed to travel to Guyana was denied.