He conned Home Point Financial, LoanDepot, and UWM
A Long Island man has been found guilty of pocketing millions of dollars after defrauding lenders and stealing his clients’ mortgage payments.
Brent Kaufman, a former unlicensed mortgage broker, is facing 30 years in prison, forfeiture, and a fine of up to $1 million. This was after he pleaded guilty to criminal information charging him with stealing over $4.7 million in mortgage refinancing proceeds meant to pay off the existing mortgages of his clients.
“Kaufman admits to stealing millions of dollars in a brazen mortgage fraud scheme that defrauded numerous lenders and left his homeowner-clients in danger of losing their homes to foreclosure,” said acting US attorney Jacquelyn Kasulis.
A release from the US Attorney’s Office, Eastern District of New York, noted that on numerous occasions between 2016 and 2019, Kaufman defrauded Home Point Financial, LoanDepot, United Wholesale Mortgage, and other mortgage lenders by providing them false information on where to send money.
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Normally, the fund from the new mortgage would be wired to the homeowner’s first lender to pay off their existing mortgage. Instead of wiring the funds to the lender, Kaufman rerouted the money to his bank accounts. In order to avoid detection, he used some of the money to make monthly payments, or to eventually pay off those mortgages.
As a result, his unsuspecting clients were left with two mortgages on their homes and several homes were foreclosed when he stopped paying. Overall, his victims suffered a loss of about $2.5 million.
“Not only did Kaufman steal his victims’ money, but he also violated their trust, leaving them financially vulnerable and at risk of significant financial complications,” said Michael Driscoll, assistant director-in-charge at the FBI New York Field Office. “Collectively, his victims suffered millions of dollars in losses. Today’s guilty plea reminds us of the threat posed by those who prioritize their own financial interests above all else.”
“This is a classic case of greed overcoming honest business practices, as Mr. Kaufman took advantage of his access to clients funds to enrich his own lifestyle. His actions left many in financial ruin, holding two mortgages and facing the threat of foreclosure,” said Darnell Edwards, acting inspector-in-charge at the United States Postal Inspection Service, New York Division (USPIS).
