STAMFORD, Conn. – A Stamford man pleaded guilty to his role in a mortgage fraud scheme that caused more than $7 million in loss for lenders, according to a statement from U.S. Attorney for Connecticut Deirdre M. Daly.
Asm Afsary, 41, pleaded guilty Monday to conspiring to defraud financial institutions through an extensive scheme that involved dozens of Fairfield County properties.
According to court documents, Afsary participated in a mortgage fraud conspiracy between 2005 and 2013 that involved the purchase of numerous properties, after which Afsary and his co-conspirators would provide false information to mortgage lenders. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of downpayments and false HUD-1 Forms.
Afsary admitted that he recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans, but had no financial stake in the transactions.
Most of the properties involved in the fraud scheme ended up in foreclosure, or in short-sale transactions.
He pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud before Chief U.S. District Judge Janet C. Hall in New Haven. That guilty plea carries a maximum term of 30 years in prison. His sentencing is scheduled for Oct. 1.
Afsary is the fourth person involved in this mortgage scheme to plead guilty.