Worcester Man Sentenced For Mortgage Scheme
A Worcester man charged with running a mortgage fraud scheme was sentenced today, according to Attorney General Martha Coakley's office.
Kenneth Garabedian, 55, was sentenced to 30 months in prison after pleading guilty to a slew of charges stemming from an investigation into the criminal enterprise during which prosecutors say Garabedian received millions of dollars worth of fraudulent mortgage loans by creating false documents containing the names of straw buyers.
Garabedian is expected to serve one year in prison, with the balance of the sentence suspended for a probationary period of three years. He was also ordered to pay a $4,000 fine.
Garabedian was the final defendant sentenced after an 11-month investigation by Coakley's office that began in 2007. The investigation determined that Garabedian had coordinated the creation of the false loan documents and had paid a bank employee to complete them.
Other defendants in the mortgage ring who had previously pled guilty include Allen Seymour of Oxford, who received a 30-month state prison sentence and five years of probation; former attorney Raymond A. Desautels III of Oxford, who received a two-year state prison sentence; and former mortgage broker Erik Tancun of Marshfield, who received a 24- to 30-month state prison sentence.
The charges against Garabedian included 10 counts of making or publishing fake or exaggerated statements, two counts of aiding and abetting the misconduct of a bank employee, two counts of conspiracy and one count of commercial bribery.
Click here to read the WBJ's coverage of the initial indictments in the case.
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