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Mortgage fraud ringleader gets 5 years

Federal agents gather evidence inside of Bridgewater Funding

Federal agents gather evidence inside of Bridgewater Funding in Islip. (May 28, 2009) Photo Credit: Ed Betz

The former manager of an Islip mortgage broker has been sentenced to 5 years in prison for coordinating a fraud ring that allegedly bilked $10 million out of lenders.

Micah Meyers, 32, of Copiague, was sentenced Monday by U.S. District Court Judge Deborah A. Batts in Manhattan after pleading guilty in May to one count of conspiracy to commit bank and wire fraud. He was one of 13 people indicted in May 2009, and that was followed by a federal raid on Bridgewater Funding, where Meyers and four alleged accomplices had worked. Others are still awaiting trial.

From 2005 to 2007, Meyers targeted Long Island and New York City properties in the foreclosure process that could be flipped quickly, sometimes twice, said the office of U.S. Attorney Preet Bharara in Manhattan.

Meyers recruited and paid straw buyers, including friends and family. Homeowners in foreclosure were told that the sale would help them save their homes, federal authorities said.

Meyers submitted falsified documents to lenders. Ring members applied for loans that were higher than the sale prices negotiated with the homeowners, and that “spread” was shared by Meyers and others, Bharara's office said. Also, he rented out some properties and used this money and fraud profits to pay the mortgage for a certain time before defaulting.

Meyers had been indicted on the conspiracy charge and 11 counts of bank and wire fraud. Also under the sentence, he will have 3 years of supervised release and must forfeit $1 million. His attorney could not be reached for comment.

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