Westchester Insider: Westchester County District Attorney: SIX INDICTED IN $2 MILLION LOAN FRAUD INVOLVING STOLEN WESTCHESTER PROPERTY DEEDS IN REAL ESTATE SCHEME.

 

SIX INDICTED IN $2 MILLION LOAN FRAUD INVOLVING STOLEN WESTCHESTER PROPERTY DEEDS IN REAL ESTATE SCHEME.

Defendants allegedly targeted distressed homeowners in New Rochelle and Yonkers; also charged with evading nearly $200,000 in taxes.

 

WHITE PLAINS, N.Y. – Westchester County District Attorney Miriam E. Rocah announced that six individuals and a corporation were indicted for defrauding distressed homeowners by stealing the property deeds to Westchester homes and fraudulently obtaining $2 million in loans. The defendants—including licensed realtors and an attorney—were also charged with evading a combined total of nearly $200,000 in state taxes. 

 

DA Rocah said: “Deed theft schemes exploit the most vulnerable and can have lasting housing and financial impacts to families. My office will seek to hold the defendants accountable for allegedly stealing titles to victims’ homes while pretending to help them.” 

 

As alleged in the indictments, the defendants targeted three residential properties facing bankruptcy or foreclosure—two in New Rochelle and one in Yonkers valued in total at nearly $2.5 million. Owners for two of the properties believed they were receiving mortgage assistance when they signed over to the defendants the deeds to their homes at a closing. The third property, which was in bankruptcy proceedings, was acquired in a short sale and two of the defendants allegedly moved in and occupied that home as their primary residence. The defendants were charged with forging financial statements and filing false tax documents to obtain $1.5 million in short-term “fix and flip” loans for the properties before defaulting on those mortgages, and also securing a $500,000 COVID relief small business loan. The homeowners who were expecting a refinanced mortgage faced eviction or were pushed out of their home. 

 

The District Attorney identified the defendants as: licensed real estate broker Marcia Campbell, 61, of New Rochelle, and her husband, a licensed real estate salesperson, Fred Campbell, 64, of New Rochelle; licensed attorney Anthony Chilliest, 53, of New York City; Gerald Smith, 48, of Elmsford; Wayne Green, 48, of Lynbrook, N.Y.; Frank Palmer, 66, of the Bronx; and Campal Corp.  

 

Marcia and Fred Campbell, Chilliest, Smith and Green were arrested and arraigned on June 21 and Palmer was arrested and arraigned on June 29. A Westchester County Grand Jury charged the defendants across multiple indictments that include: 

·         Conspiracy in the Fourth Degree 

·         Grand Larceny in the First Degree 

·         Grand Larceny in the Second Degree 

·         Falsifying Business Records in the First Degree  

·         Offering a False Instrument for Filing in the First Degree 

·         Criminal Tax Fraud in the Third Degree 

·         Criminal Tax Fraud in the Fourth Degree 

·         Criminal Tax Fraud in the Fifth Degree 

·         Repeated Failure to File a Corporate Tax Return 

 

Bail was set for Marcia and Frank Campbell, Chilliest, Smith and Palmer.  

 

The case is before Judge George Fufidio in Westchester County Court, and is being prosecuted by Assistant District Attorney Cooper Gorrie of the Trials and Investigations Division. The Economic Crimes Bureau and criminal investigators of the Westchester County District Attorney’s Office initiated an investigation more than two years ago after a victim filed a complaint with the DA’s Office. The New York State Department of Taxation and Finance assisted with the investigation. 

 

Anyone who may be a victim of deed theft or fraud can file a complaint with the DA’s Office at (914)995-TIPS (8477). 

 

The charges against the defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 

 

 

 

SUMMARY OF INDICTMENTS 

 

The charges against the defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 

 

Marcia Campbell, 61, of New Rochelle, a licensed real estate broker, was charged with Conspiracy in the Fourth Degree, Grand Larceny in the First Degree, four counts of Falsifying Business Records in the First Degree, four counts of Grand Larceny in the Second Degree, two counts of Offering a False Instrument for Filing in the First Degree, three counts of Criminal Tax Fraud in the Third Degree, two counts of Criminal Tax Fraud in the Fourth Degree, two counts of Repeated Failure to File a Corporate Tax Return, all felonies, and two counts of Criminal Tax Fraud in the Fifth Degree, a misdemeanor.  

Identified financially distressed properties, promised mortgage assistance to homeowners in order to induce them to sign the deeds to their properties over to Campal Corp., a corporation she owned that served to obfuscate her identity in transactions.

·         Committed tax fraud, with the intent to evade taxes due for two other corporations under her name—Extreme Realty Associates and Extreme Taxes Inc.--between 2019 and 2022.  

·         Repeatedly failed to file corporate tax returns for Extreme Taxes Inc. between 2019 and 2022. 

·         Filed false and forged corporate tax returns for Extreme Realty Associates in 2019. 

·         Committed tax fraud, with the intent to evade taxes due for Campal Corp. with Frank Palmer in 2022. 

 

Fred Campbell, 64, of New Rochelle, a licensed real estate salesperson and husband of Marcia Campbell, was charged with Conspiracy in the Fourth Degree, Grand Larceny in the First Degree, Falsifying Business Records in the First Degree, and two counts of Criminal Tax Fraud in the Fourth Degree. 

·         Acted as a straw purchaser and loan guarantor for the acquisition of residential properties. 

·         Used 99 Patmore Ave Inc. and Gencamp LLC, two corporate entities under his name, to facilitate fraudulent transactions using doctored statements to prove liquidity with lenders. 

·         Committed tax fraud, with the intent to evade taxes due for 99 Patmore Ave Inc. and Gencamp LLC. in 2020. 

 

Anthony Chilliest, 53, of New York City, a licensed attorney, was charged with Conspiracy in the Fourth Degree, Grand Larceny in the First Degree, three counts of Falsifying Business Records in the First Degree, three counts of Grand Larceny in the Second Degree, five counts of Criminal Tax Fraud in the Fourth Degree, five counts of Offering a False Instrument for Filing in the First Degree, and Criminal Tax Fraud in the Third Degree.  

·         Falsely represented himself as an attorney for Chase to a homeowner. 

·         Provided false and forged documents to title insurance companies and lenders to facilitate loan acquisitions.  

·         Committed tax fraud, with the intent to evade taxes due for Macdonough Street Realty between 2021 and 2022. 

·         Committed tax fraud, with the intent to evade taxes between 2019 and 2022. 

·         Filed false and forged corporate returns for Macdonough Street Realty in 2021.  

·         Filed false and forged personal income tax returns between 2019 and 2021.  

 

Gerald Smith, 48, of Elmsford, was charged with Conspiracy in the Fourth Degree, Grand Larceny in the First Degree, three counts of Falsifying Business Records in the First Degree, Grand Larceny in the Second Degree, three counts of Offering a False Instrument for Filing in the First Degree, Criminal Tax Fraud in the Third Degree, Criminal Tax Fraud in the Fourth Degree, and Criminal Tax Fraud in the Fifth Degree.  

·         Functioned as a loan broker, communicating with lenders to further the acquisition of loan proceeds.  

·         Made false entries in loan applications and filed false and forged documents provided by his co-defendants to ensure the loans were procured. 

·         Coordinated loan procurement efforts with Marcia Campbell and Anthony Chilliest. 

·         Committed tax fraud, with the intent to evade taxes due between 2020 and 2021. 

·         Filed false and forged personal income tax returns with the New York State Department of Taxation and Finance between 2020 and 2021. 

 

Wayne Green, 48, of Lynbrook, was charged with Conspiracy in the Fourth Degree, Grand Larceny in the First Degree, two counts of Falsifying Business Records in the First Degree, Grand Larceny in the Second Degree, Offering a False Instrument for Filing in the First Degree, and two counts of Criminal Tax Fraud in the Fourth Degree.  

·         Worked with Marcia Campbell to acquire financially distressed properties through which loans could be fraudulently procured. 

·         Assisted with submitting forged and false documents to the Small Business Administration. 

·         Committed tax fraud, with the intent to evade taxes due for SAJ Marketing Consultants Inc., in 2020 and 2021. 

 

Frank Palmer, 66, of the Bronx, was charged with Conspiracy in the Fourth Degree, Grand Larceny in the First Degree, four counts of Falsifying Business Records in the First Degree, four counts of Grand Larceny in the Second Degree, Offering a False Instrument for Filing in the First Degree, and Criminal Tax Fraud in the Third Degree. 

·         Acted as a straw purchaser fraudulently representing himself to lenders and homeowners as the sole owner of Campal Corp., attending real estate closings and signing paperwork associated with Campal Corp. 

·         Filed false federal tax returns for Campal Corp. to acquire a $500,000 Economic Impact Disaster Relief Loan from the U.S. Small Business Administration.  

·         Committed tax fraud, with the intent to evade taxes due for Campal Corp. with Marcia Campbell in 2022. 

 

Campal Corp. was charged with Conspiracy in the Fourth Degree, four counts of Grand Larceny in the Second Degree, three counts of Falsifying Business Records in the First Degree, Offering a False Instrument for Filing in the First Degree, and Criminal Tax Fraud in the Third Degree. 

·         As a corporation in the state of New York, functioned as a straw purchaser.  

·         Was used as the buyer of record for most of its fraudulent real estate transactions, and applied for a loan from the Small Business Administration.  

·         Served to obfuscate the identities of Marcia Campbell, Anthony Chilliest, and other defendants as the true purchasers and applicants in fraudulent transactions.  

·         Sent eviction notices to the homeowners who remained in one of the New Rochelle properties.  

·         Committed tax fraud, with the intent to evade taxes due in 2022.