A
Queens man was convicted in a Brooklyn federal court on Thursday for his involvement in a massive mortgage fraud scheme that targeted distressed properties through fake short sales.
Avraham Tarshish, 40, faces up to 30 years in prison after a jury found him guilty of conspiracy and related charges. The scheme, which ran from March 2013 to November 2018, involved Tarshish and his co-conspirators manipulating short sale transactions to artificially lower property values.
Prosecutors alleged that Tarshish paid homeowners to secure exclusive access to short sales, blocked competitive offers by failing to market properties properly, and placed fake liens on homes to reduce their value. He also intentionally damaged properties to make them appear less desirable. False documents were submitted to mortgage lenders, concealing payments to homeowners and side agreements to flip properties at inflated prices.
The scheme caused over $2.4 million in losses for lenders, including those insured by the Federal Housing Administration or backed by Fannie Mae and Freddie Mac. United States Attorney Breon Peace stated that Tarshish's actions harmed taxpayers and depressed real estate values in neighborhoods.
Tarshish's co-conspirators, who have already pleaded guilty, are also facing up to 30 years in prison. A fourth co-conspirator, Michael Herskowitz, may serve up to five years for his role in the scheme.
