Unlicensed mortgage broker pleads guilty to $4.7 million fraud scheme
On Monday, in Brooklyn Federal Court, former unlicensed mortgage broker Brent Kaufman pleaded guilty before United States District Judge Kiyo A. Matsumoto to stealing $4.7 million in mortgage refinancing proceeds that were meant to pay off the existing mortgages of his clients.
When sentenced, Kaufman faces up to 30 years in prison, as well as forfeiture and a fine of up to $1 million.
According to prosecutors, Kaufman worked as an unlicensed mortgage broker and often assisted clients in Queens and Long Island with refinancing their mortgages. At the closing for a mortgage refinancing, the money from the new mortgage is supposed to be wired to the financial institution that holds the existing mortgage so that it can be paid off.