Bolingbrook Man 1 of 9 Defendants Indicted in 2 Separate Mortgage Fraud Schemes

The following news release was issued by Randall Samborn, assistant U.S. attorney/public information officer:

A couple who owned a now-defunct suburban title company, a disbarred attorney, and an attorney are among nine defendants who have been indicted in two separate mortgage fraud cases, federal law enforcement officials announced today.

The list includes one Bolingbrook man: 30-year-old Azeem Sayed.

Seven defendants were charged together in one case, and two in the second case, together alleging schemes to fraudulently obtain at least four residential mortgage loans totaling more than $1 million from lenders.Both indictments allege that the mortgages were obtained to finance the purchase of properties on Chicago’s south side, using fraudulent means such as straw purchasers, short sales, inflated prices, and unqualified buyers, while the defendants allegedly profited.

As a result, the lenders incurred losses because the mortgages were not fully recovered through subsequent sale or foreclosure.

Seven defendants were charged in an indictment that was unsealed on Monday following the arrest of HARVEY WRIGHT, 46, of Chicago, a disbarred South Holland attorney, and PRECIOUS HOUSE, 47, of Chicago.

Also indicted, but not arrested, were DAVID GUEL, 60, and his wife, MARY GLEASON, 48, both of Blue Island; MUNTAZER ALI SAIYED, also known as “Monty Saiyed,” 37, of Bartlett; SAGED ANSARI, 32, of Hanover Park; and AZEEM SYED, 30, of Bolingbrook.  All seven were charged with two counts of wire fraud and House, Syed, Saiyed, and Ansari were also charged with one count each of identity theft.  The indictment seeks forfeiture of more than $800,000.

Guel and Gleason owned and operated the former U.S. Worldwide Title Services LLC, a title company located in Downers Grove.

All seven defendants pleaded not guilty yesterday or Mondayin U.S. District Court and were released on bond.  A status hearing was scheduled for Jan. 13.        According to the indictment, between September 2008 and March 2009, the defendants caused two fraudulent mortgage loans to be issued by lenders for properties at 4823 South Racine Ave., and 6738 South Marshfield Ave.

The alleged fraud involved false representations in documents, including real estate contracts, loan applications, title commitments, and HUD-1 settlement statements concerning sales prices, the true disbursement of the loan proceeds at closing, the buyer’s assets, employment, and income.

The defendants allegedly used straw buyers who had no intention of residing in the property and making mortgage payments, as well as stolen identities of individuals who did not know that their identities were being used to purchase property.

Guel, Gleason, Wright, and House allegedly conducted “double closings” at Worldwide Title in which a single property was sold twice through a short sale of the property from an owner to a buyer, who only temporarily took ownership before immediately re-selling to a second buyer at an inflated sales price using a fraudulently obtained mortgage to finance the purchase.

House allegedly facilitated the double closings by recruiting individuals to pose as the first and second buyers and arranging for them to use stolen identities provided by Syed, Saiyed, and Ansari, in connection with the transactions, the indictment alleges.

Guel, Gleason, and Wright allegedly prepared fraudulent documents stating that the properties had been transferred into a trust approximately a year before the double closing to conceal from the lender that the property was being sold twice, including on the same day.

These three defendants and House allegedly obtained loan proceeds for their own personal benefit.

This case is part of Operation Mad House, an undercover investigation designed to combat mortgage and real estate fraud in the Chicago area with a focus on professionals in the real estate industry.

Since 2009, more than 50 defendants have been convicted, including title company operators, mortgage brokers, licensed appraisers, and attorneys.

The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.

The government is being represented by Assistant U.S. Attorneys Sunil Harjani and Kathryn Malizia.In an unrelated case, GEORGE KOUVELIS, 39, of Bloomingdale, who bought and sold residential properties, and KARIM DURE, 39, of Chicago, an Evanston attorney, were each charged with two counts of wire fraud in an indictment that was unsealed on Nov. 14 after Kouvelis was arrested.

Kouvelis and Dure, who was not arrested, both pleaded not guilty and were released on bond.  Their next court date is Jan. 6.  The indictment seeks forfeiture of $521,250.