On June 18, 2008, an Information was filed charging defendant Joseph J. Weisenfeld, a local real estate attorney, with wire fraud in connection with a scheme to misappropriate almost $3 million in client funds purportedly held in escrow for authorized real estate transactions and related expenses.

According to the Information, Weisenfeld frequently acted as the closing agent for real estate transactions.  As the closing agent, Weisenfeld would collect funds from buyers and lenders, and would represent to the parties engaged in the transaction that these funds were being held in escrow to be disbursed for various specified purposes, including the satisfaction of pre-existing mortgages.  In fact, however, Weisenfeld misappropriated the escrowed funds for his use and benefit.  Over the course of the scheme, Weisenfeld misappropriated almost $3 million in client funds from his attorney trust account. 

The defendant was charged with wire fraud.  Mr. Acosta commended the investigative efforts of the U.S. Secret Service.  The case is being prosecuted by Assistant United States Attorney Joan Silverstein.

In all cases, the defendants face the following possible maximum terms of imprisonment if convicted: conspiracy to commit wire fraud and substantive wire fraud:  20 years’ imprisonment; aggravated identity theft: mandatory 2 years’ imprisonment; bank fraud: 30 years’ imprisonment; false loan application: 30 years’ imprisonment; money laundering: 20 years’ imprisonment; failure to file tax returns: 1 year imprisonment; tax evasion: 5 years’ imprisonment; filing a false tax return: 3 years’ imprisonment.

United States Attorney Acosta stated, "Although the number of federal mortgage fraud prosecutions is on the rise, the battle against mortgage fraud is far from over.  It is evident that more is needed.  We are designating additional attorneys in the Economic Crimes Section to devote their talent and time exclusively to the investigation and prosecution of mortgage fraud. Many of our federal and local law enforcement partners are taking similar steps.  Together, we will make criminal mortgage fraud prosecutions a top priority."

Jonathan I. Solomon, Special Agent in Charge of the FBI's Miami Office, stated, “Mortgage fraud is a significant and growing crime problem in our area. Combating fraud is a priority because mortgage lending and the housing market have a profound overall effect on the nation’s economy.” 

“The Southern District of Florida’s Federal-State Mortgage Fraud Initiative, in conjunction with today’s national “Operation Malicious Mortgage” take-down, unequivocally demonstrate that those who attack America’s dream of home ownership and threaten its financial institutions will experience the full force of law enforcement.  Today’s take-down also illustrates that fraudsters will not be allowed to enjoy their illegal proceeds,” said Henry Gutierrez, Inspector in Charge, U.S. Postal Inspection Service.

“We at ICE are pleased to have been able to assist in bringing about today’s indictments, which highlight some abuses in the real estate industry,” said Anthony Mangione, Special Agent in Charge of the ICE Office of Investigations in Miami. “Mortgage fraud costs lenders and purchasers millions of dollars and undermines the credibility of the real estate industry. The Miami ICE Office of Investigations will continue to work to uncover illicit transactions involving mortgage brokers and together with the law enforcement community is united in our resolve to disrupt criminal organizations that commit crimes against our society and the economy.”

“At a time when Miami Dade-County is working to help struggling homeowners, a number of unscrupulous individuals are scheming to profit at the homeowners' expense.  The Miami-Dade Police Department is pleased to be part of this investigation and will continue to work closely with our federal and local partners now and in the future to target these fraudulent mortgage activities,” said Miami-Dade Police Department Director Robert Parker.