Two Connecticut men arrested for multifamily mortgage scam

The defendants allegedly defrauded CBRE and Freddie Mac

Two Connecticut men arrested for multifamily mortgage scam

Two Connecticut men were arrested last week for their alleged role in a multifamily mortgage fraud scheme.

Jacob Deutsch, 56, of Brooklyn, NY, and Aron Deutsch, 60, of Monsey, NY. have been accused of federal conspiracy, fraud, and false statement offenses.

According to court documents, they allegedly defrauded CBRE Capital Markets and Freddie Mac by acquiring a mortgage loan through an entity known as 16 53 Evergreen Avenue LLC to refinance the two Hartford properties. The two, and others, purchased the properties for roughly $1.8 million.

The defendants work at B H Property Management (BHPM), a property management company that manages several multifamily properties in Hartford. Jacob oversaw the day-to-day operations of BHPM, while Aron was responsible for coordinating maintenance and construction activities for the properties managed by the firm.

Officials discovered that the loan application documents contained numerous misrepresentations about Evergreen Avenue’s occupancy rate and net operating income. The Deutsches were charged with conspiracy to commit mail and wire fraud, wire fraud, mail fraud, and making false statements.

After appearing before a judge via videoconference, Jacob was released on a $50,000 bond while Aron paid $100,000 bail.                                

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