Hempstead mortgage broker arrested in FBI crackdown

A Hempstead mortgage broker was arrested Monday on fraud charges of allegedly illegally obtaining more than $4.7 million in mortgages, according to officials.

The broker, Hope Edmond, who operates Posh Consultants Group, "routinely offered to pay individuals to make false mortgage applications as so-called 'straw borrowers,' " according to an arrest warrant filed by the FBI.

Edmond's arrest was the latest in a nationwide action against mortgage fraud code-named Operation Stolen Dreams. Since last week more than 485 people have been arrested across the country in frauds totaling $2.3 billion in losses, according to U.S. Attorney General Eric Holder.

Edmond is a previous "felon with multiple arrests and convictions for forgery," according to the arrest warrant.

At an appearance in U.S. District Court in Central Islip Monday, Edmond was ordered held without bail pending future hearings. U.S Magistrate William Wall issued the detention order after one of Edmond's lawyers, Jennifer McCann, of Garden City, said she could not immediately put together a bail package. Edmond was not required to enter a plea.

Afterward, McCann, who is representing Edmond along with Garden City attorney Thomas Liotti, said that "while in this age of Madoff accusations of financial fraud are very serious, my client will eventually prevail" when all the facts come out.

Assistant U.S. Attorney Hilary Jager declined to comment.

In one alleged scheme outlined in the arrest warrant, Edmond cost two banks more than $717,000 in a mortgage fraud involving the purchase of a house in Texas.

In that scheme, Edmond allegedly offered an unidentified informant $45,000 to participate as a front in obtaining mortgages from two banks on the Texas house. Edmond then prepared mortgage applications stating the informant earned $40,000 a month, "many times actual income," and said the informant planned to move from Long Island to Texas and use the house as her new home, the government said.

Edmond paid the informant $40,000 and made four mortgage payments in 2007, but then stopped making any payments, the affidavit said.