Seven Michigan originators have been arrested over allegations of submitting fraudulent loan applications.
Peter Allen, Suhail Hallak, Al Karana, Joey Murad, Jason Najor, Jeffrey Najor and Wasseem Shamoun worked together from January 2006 to December 2008 to allegedly submit fraudulent loan applications for homes they had already purchased on the cheap. Financial institutions paid out approximately US $ 10m in fraudulent loan funds for the properties, according to Department of Justice.
In addition to the conspiracy charge, Hallak, Karana, Jason and Jeffrey Najor and Shamoun have been charged with 20 counts of bank fraud, while Murad was charged with seven counts of bank fraud and Allen was charged with two.
The Department of Justice highlighted that the indictments did not constitute a finding of guilt, but if convicted of the conspiracy charge, the defendants could face up to 30 years in prison and a $1m fine.