David B. Fein, United States Attorney for the District of Connecticut, announced that Kenneth Perkins, 30, of Groton, was sentenced by Chief United States District Judge Alvin W. Thompson in Hartford to eight months of imprisonment, followed by three years of supervised release, for his role in an extensive mortgage fraud scheme.
According to court documents and statements made in court, between February
2007 and April 2010, Syed Babar of New London orchestrated a scheme to obtain
millions of dollars in residential real estate loans, including loans insured by
the Federal Housing Administration, through the use of sham sales contracts,
false loan applications, and fraudulent property appraisals. Perkins conspired
with Babar and others by serving as a “buyer” in approximately eight residential
property sales in 2007. All but one of these properties are in Connecticut.
Perkins knew that the sales prices on the sales contracts and closing documents
were fraudulently inflated in order to secure loans at amounts higher than the
prices actually agreed to by the sellers. Also included on the loan applications
was false information about his income, his assets and liabilities, his
intention to occupy the home as his primary residence, and his ownership
interest in property in the prior three years.
Perkins received as much as $20,000 each time he agreed to act as a
Perkins also assisted the conspiracy by helping to obtain residential real
estate loans in the names of other straw buyers. This assistance included
creating false documentation in support of loan applications, including false
employment records, false wage records, and false bank records. It also included
utilizing a bank account into which some of the fraudulent proceeds were
funneled and working with an appraiser to generate fraudulent appraisals that
would be sent to lenders in support of loan applications.
Babar and his co-conspirators conducted approximately 30 fraudulent mortgage
transactions. As a result, various lenders suffered total losses of
approximately $4.75 million.
Chief Judge Thompson ordered Perkins to pay restitution in the amount of
On October 1, 2010, Perkins pleaded guilty to one count of conspiracy to
commit wire fraud.
Thirteen individuals have been convicted in connection with this scheme.
On November 28, 2011, Syed Babar was sentenced to 120 months of imprisonment.
Six other scheme participants have received prison terms ranging from 30 to 90
This case was investigated by the Federal Bureau of Investigation and the
U.S. Department of Housing and Urban Development-Office of Inspector General and
is being prosecuted by Assistant United States Attorneys Eric J. Glover, Susan
Wines, and Liam Brennan.
Citizens are encouraged to report any suspected mortgage fraud activity by
calling 203-333-3512 begin_of_the_skype_highlighting FREE 203-333-3512 end_of_the_skype_highlighting and requesting
the Connecticut Mortgage Fraud Task Force, or by sending an e-mail to
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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