BOSTON—Eleven people have been indicted in a mortgage fraud scheme that netted at least $1.7 million in profits, federal authorities said Friday.
The suspects include the manager of a real estate firm, mortgage brokers and two attorneys, Eric Levine, 55, of Brookline, whose license to practice law had been suspended by the Supreme Judicial Court in 2003 and 2004, and J. Daniel Lindley, 59, a practicing attorney from Boston. They face various charges, including conspiracy, wire fraud, money laundering and identity theft.
The participants allegedly submitted false information on mortgage loan applications from May 2005 to December 2006 and obtained $10.6 million in fraudulent mortgage loans. The indictment claims they made at least $1.7 million through the scheme.
The indictment alleges that the suspects recruited straw borrowers and then obtained loans higher than the purchase prices of properties. Authorities allege they pocketed the difference between the actual purchase price and the loan amount and also made money fraudulently through mortgage broker fees, attorney fees and real estate commissions.
Three people had their identities stolen and used as straw borrowers, the indictment said.
The indictment alleges the suspects fraudulently bought and sold at least 21 properties in Boston, Cohasset, Quincy and Brockton.
Levine and Lindley could not immediately be reached for comment Friday, and it was unclear whether they had retained attorneys yet.
