Paralegal Gets 33 Months for Mortgage Fraud
David B. Fein, United States Attorney for the District of Connecticut, today announced that Louise Lampo-Diglio, 43, of East Haven, was sentenced yesterday by Senior United States District Judge Alfred V. Covello in Hartford to 33 months of imprisonment, followed by two years of supervised release, for her role in a mortgage fraud scheme.
According to court documents and statements made in court, in 2006 and 2007, Lampo-Diglio, participated in a mortgage fraud conspiracy by serving as a paralegal in connection with fraudulent real estate transactions in New London County. As part of the scheme, Lampo-Diglio served as the paralegal for David Kinney, a licensed attorney, to prepare and submit fraudulent paperwork to lenders, including materially false HUD-l settlement statements.
For example, in connection with the August 2006 sale of a house at 5 Coit Street, New London, Lampo-Diglio prepared and submitted a HUD-1 form for a sham sale that never occurred. She also prepared a HUD-1 form in connection with a subsequent refinance of 5 Coit Street. Although that HUD-1 form indicated that certain private mortgages were being paid out of the refinance proceeds, Lampo-Diglio knew that the refinance proceeds were being used to pay off her co-conspirators, Jose Guzman and Stacey Petro.
In addition, from approximately 2004 to 2007, in connection with numerous real estate transactions for various licensed attorneys, Lampo-Diglio prepared and sent materially false closing documents to lenders. One or more of these mortgage loans were insured by the U.S. Department of Housing and Urban Development’s (HUD) insurance program. Among the false statements made to the lenders were documents that falsely indicated that the buyers of certain properties were planning to make the properties their primary residences when, as LAMPO-DIGLIO knew, the buyers were straw purchasers who did not intend to make the properties their primary residences.
On Dec. 14, 2011, Lampo-Diglio pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.
Judge Covello ordered Lampo-Diglio to pay restitution of $6,348,403.15, jointly and severally with her co-defendants.
Sixteen individuals, including Kinney, Guzman and Petro, have been charged as a result of this mortgage fraud investigation, which has resulted in losses of several million dollars to lenders. All 16 defendants have pleaded guilty.
On May 1, 2012, Judge Covello sentenced Petro to 41 months in prison. Kinney and Guzman await sentencing.
This case has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and David T. Huang.
In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an email to firstname.lastname@example.org.
The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
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