Case 3:13-cr-00095-AWT Document 2 Filed 05/21/13 Page 1 of 6 UNITED STATES OF AMERICA UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT ~,.... i.. Criminal NO. 3:13CR~S (llwrj -'" ZOI3 HAY 21 P 4: 08. ( '~T v. DANIEL MONTEIRO VIOLA TIONS: 18 U.S.C. 371 (Conspiracy) 18 U.S.C. 981(a) (Forfeiture) 18 U.S.C. 982(a)(2) (Forfeiture) 28 U.S.C. 2461(c) (Forfeiture) The United States Attorney charges: INFORMATION COUNT ONE (Conspiracy) (18 U.S.C. 371) 1. From in or about May 2007 and continuing until in or about October 2007, the exact dates being unknown, in the District of Connecticut and elsewhere, the defendant, DANIEL MONTEIRO ("MONTEIRO"), did unlawfully, knowingly, and intentionally conspire, combine, confederate and agree with Individual # 1, a co-conspirator charged in a separate document but not named as a defendant herein, and others, known and unknown to the United States Attorney, to commit offenses against the United States in connection with the purchase, sale and mortgage financing of residential real estate, contrary to one or more of the following objects, that is: a. to devise and to intend to devise a scheme and artifice to defraud a financial institution, and for obtaining money and property owned by, or under the custody and control of, a financial institution, to knowingly execute a scheme and artifice to defraud by means of materially false and fraudulent pretenses, representations, and promises, in violation of Title 18, United States Code, Section 1344; b. to devise and to intend to devise a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises, and for the purpose of executing the scheme and
Case 3:13-cr-00095-AWT Document 2 Filed 05/21/13 Page 2 of 6 artifice, to knowingly transmit and cause to be transmitted, by means of wire communications in interstate and foreign commerce, writings, signs, signals, pictures, and sounds, in violation of Title 18, United States Code, Section 1343; and c. to knowingly engage and attempt to engage in a monetary transaction in criminally derived property that is of a value greater than $10,000 and is derived from specified unlawful activity in the United States, in violation of Title 18, United States Code, Section 1957. Purpose and Object of the Conspiracy 2. A purpose and object of the conspiracy was for MONTEIRO and his co-conspirators to unlawfully enrich themselves by obtaining real estate mortgages through the use of, among other things, false down payments and hidden referral fees, and to conceal the conspiracy from others. Manner and Means of the Conspiracy The manner and means by which MONTEIRO and his co-conspirators sought to accomplish and did accomplish the objects of the conspiracy included, among others, the following: 3. It was part of the conspiracy that Individual #1 purchased, either individually or in the names oflimited liability corporations that Individual #1 controlled, numerous residential real estate properties in Connecticut. 4. It was further part of the conspiracy that Individual # 1 purchased these residential real estate properties with financing from private lenders, including Private Lender #1. 5. It was further part of the conspiracy that MONTEIRO referred borrowers to purchase residential real estate from Individual #1. 6. It was further part of the conspiracy that the borrowers each purchased more than one property from Individual #1. - 2 -
Case 3:13-cr-00095-AWT Document 2 Filed 05/21/13 Page 3 of 6 7. It was further part of the conspiracy that the borrowers applied for mortgages from mortgage lenders and federally-insured financial institutions (collectively, the "Lenders") to finance the purchase of such properties. 8. It was further part of the conspiracy that, although the borrowers were obligated to make a down payment by a Lender to purchase each property, they did not make a down payment with their own funds. 9. It was further part of the conspiracy that Individual # 1 purchased cashier's checks that were used as the down payments at the closings for the borrowers. 10. It was further part of the conspiracy that Law Firm #1 performed most of the closings for the borrowers' purchases from Individual # 1. 11. It was further part of the conspiracy that Law Firm #1 would pay offindividual #l's outstanding loans to private lenders, including Private Lender #1, from the mortgage proceeds fraudulently received through the borrowers' closings. 12. It was further part of the conspiracy that, in connection with MONTEIRO referring the borrowers to Individual #1 to purchase residential real estate, Individual #1 paid MONTEIRO thousands of dollars by personal check. 13. It was further part of the conspiracy that funds were obtained from the Lenders by interstate wires in connection with the submission of false HUD-1 settlement statements and that a portion of such funds were disbursed to Individual #1. - 3 -
Case 3:13-cr-00095-AWT Document 2 Filed 05/21/13 Page 4 of 6 Overt Acts In furtherance of the conspiracy and to effect the objects ofthe conspiracy, MONTEIRO and his co-conspirators committed and caused to be committed the following overt acts, among others, in the District of Connecticut and elsewhere: 14. In connection with the purchase from Individual #1 of a residential real estate property in Hartford in May 2007: a. On or about May 15,2007, Individual #1 signed a HUD-1 form indicating a payoff ofa $192,783.17 loan to Private Lender #1 from the seller's proceeds. b. On or about May 15, 2007, Individual #1 made out a personal check in the amount of $5,000 made payable to MONTEIRO. 15. In connection with the purchase from Individual #1 of a residential real estate property in Middletown in August 2007: a. On or about August 14,2007, Chase Bank U.S.A., N.A., a federally-insured financial institution, funded a mortgage in the amount of $256,500. b. On or about August 14,2007, Individual #1 purchased a cashier's check in the amount of$17,133.27 that was used as the down payment for the closing on behalf of the borrower. c. On or about August 14,2007, Individual # 1 made out a personal check in the amount of $5,000 made payable to MONTEIRO. d. On or about August 15,2007, Law Firm #1 sent an interstate wire in the amount of$156,603.57 from its client trust account to Private Lender #l's account. All in violation of Title 18, United States Code, Section 37l. FORFEITURE ALLEGATION 16. Upon conviction of the offense alleged in this Information, MONTEIRO shall forfeit to the United States of America pursuant to Title 18, United States Code, Section 982(a)(2), Title - 4 -
Case 3:13-cr-00095-AWT Document 2 Filed 05/21/13 Page 5 of 6 18, United States Code, Section 981(a)(I)(c), and Title 28, United States Code, Section 2461 (c), all right, title, and interest in any and all property, real or personal, which constitutes or is derived from proceeds traceable to violations of Title 18, United States Code, Sections 371, 1344, 1343, and 1957, including but not limited to a sum of money equal to the total amount of any property, real or personal, which constitutes or is derived from proceeds traceable to violations of Title 18, United States Code, Sections 371, l344, l343, and 1957, that is, a money judgment of at least $15,000. 17. If any of the above-described forfeitable property, as a result of any act or omission of MONTEIRO, cannot be located upon the exercise of due diligence, has been transferred, sold to, or deposited with a third party, has been placed beyond the jurisdiction of the court, has been substantially diminished in value, or has been commingled with other property that cannot be divided without difficulty, it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), as incorporated by Title 18, United States Code, Section 982(b), to seek forfeiture of any other property of MONTEIRO up to the value of the forfeitable property described above. - 5 -
Case 3:13-cr-00095-AWT Document 2 Filed 05/21/13 Page 6 of 6 All in accordance with Title 18, United States Code, Section 982, Title 18, United States Code, Section 981(a)(1), as incorporated by Title 28, United States Code, Section 2461(c), and Rule 32.2(a), Federal Rules of Criminal Procedure. UNITED STATES OF AMERICA ACTING UNITED STATES ATTORNEY Y DAVID T. HUANG ASSISTANT UNITED STATES ATTORNEY PAUL H. McCONNELL ASSISTANT UNITED STATES ATTORNEY - 6 -