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Press Release

DELRAY BEACH MORTGAGE BROKER SENTENCED FOR FRAUD

December 19, 2008

FOR IMMEDIATE RELEASE

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau Investigation, announced that defendant John Mohan, 38, of Delray Beach, FL, was sentenced today to 33 months’ imprisonment. In September, Mohan pled guilty to a one-count Information charging him with wire fraud in connection with a scheme to misappropriate more than $1.2 million in client funds purportedly held in escrow for authorized real estate transactions and related expenses. Restitution will be determined in 90 days.

According to the Information, court documents, and statements made in court, Mohan worked as a mortgage broker and closing agent who assisted buyers in real estate transactions. As the closing agent, Mohan would collect funds from buyers and lenders, and would represent to the parties engaged in the transaction that these funds were being held in escrow to be disbursed for various specified purposes, including the satisfaction of pre-existing mortgages. In fact, Mohan misappropriated the escrowed funds for his personal use and to make additional personal investments. Over the course of the scheme, Mohan misappropriated more than $1.2 million in client funds. In an effort conceal the fraud and prevent immediate foreclosure of the property, Mohan would sometimes make some payments on the homeowner’s original mortgage.

Mr. Acosta commended the investigative efforts of the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Jeffrey A. Neiman.

A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

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