Feds file civil suit in Brooklyn in mortgage fraud case
Defendants allegedly schemed to purchase real estate at fraudulently depressed short-sale prices
The United States has filed a civil complaint in federal court in Brooklyn seeking damages and penalties against three individuals and several companies alleged to have engaged in a wide-ranging mortgage fraud scheme to defraud the government.
The complaint, unsealed Tuesday afternoon by U.S. District Judge Margo K. Brodie, alleges that Iskyo Aronov, Ron Borovinsky, Michael Konstantinovskiy and companies that they owned or controlled engaged in fraudulent short sales of residential properties insured by the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development (HUD).
The suit is brought pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).