2 More Plead Guilty
In $10M Mortgage Scam

For the second time this week, federal Judge Janet Hall Thursday heard a guilty plea from a major player in a multimillion-dollar mortgage fraud ring that spread blight and neglect through New Haven neighborhoods.

Bradford Riegerd, an East Haven lawyer, pleaded guilty Thursday to charges of conspiracy to commit mail fraud, wire fraud and bank fraud.

His plea came two days after an admission of guilt by New Haven lawyer Jeffrey Weisman, who also pleaded guilty to the same charges.

Feds say Rieger and Weisman were part of a ring of conspirators who defrauded banks of millions of dollars using phony mortgages. One of the alleged ringleaders, Menachem Joseph ​“Yossi” Levitin, of the gang pleaded guilty last week . Another, Ronald Hutchison, has been indicted but has not yet pleaded. A New Haven realtor, Charles Lesser, has also pleaded guilty for his role in the scheme.

The fraudsters allegedly swindled lenders by falsely inflating the price of homes with phony appraisals in order to get inflated mortgages, buying homes for the real (as opposed to inflated) price, and then pocketing the difference. The participants would then walk away from the properties, letting them fall into foreclosure.

In a second scam, Levitin would later swoop in and buy the properties back from the banks, which were eager to cut their losses and ready to sell at bargain prices.

According to a release from the Connecticut U.S. Attorney: ​“In total, more than $10 million in fraudulent mortgages on more than 40 properties were obtained during the conspiracy. Many of the houses purchased during the scheme went into default and have been foreclosed upon, causing losses of more than $7 million to lenders.”

Feds say that Weisman, who pleaded on Tuesday, acted as the closing attorney on about 35 fraudulent transactions. He prepared false federal Housing and Urban Development (HUD) mortgage forms that were submitted to lenders.

Rieger was the closing attorney on about 19 fraudulent transactions and prepared false HUD forms also, according to the feds.

Weisman is scheduled to be sentenced on Oct. 2, Rieger on Oct. 4. They both face maximums of 30 years in prison and fines of up to $20 million. Weisman has agreed to pay at least $4 million in restitution as part of his plea agreement. Rieger has agreed to pay at least $2.2 million.