At least 12 members of a New York City family have been accused of lying about their financial situation to take advantage of government benefits or to obtain mortgages.
Prosecutors are accusing 15 individuals — many of whom are part of the Brooklyn-based Rubin family — of conspiracy to commit bank fraud and wire fraud after they allegedly secured loans for properties in locations in and around New York City; seven individuals are being charged with theft of public money as well.
"The indictment sets forth a total of 21 counts charging various defendants with additional crimes, including making false statements to lenders, aggravated identity theft, and theft of public money," reads a press release from the United States Attorney's Office Southern District of New York.
U.S. Attorney Preet Bharara refers to visuals while announced the indictment charging 12 defendants with bank and wire fraud, Thursday, Nov. 13, 2014 in White Plains, N.Y. Twelve members of a single family are charged with lying to members in order to obtain mortgages and other loans over the past decade. (AP Photo/The Journal News, Matthew Brown)
One of the couples involved in the case reportedly claimed that they had a monthly income of just $180 so that they could qualify for food stamps and Medicaid, while they allegedly also claimed $25,000 per month in income in a separate instance while trying to take out a mortgage, according to the Daily Mail.
The case surrounds, among others, Irving Rubin, his son Yehuda and his brothers Abraham, Jacob and Samuel, as well as a real estate lawyer and an appraiser. The family is accused of fraudulently obtaining mortgage loans and additional loans from banks and lenders.
"The defendants obtained the loans by providing materially false information to the lenders about the borrowers’ assets and liabilities, including but not limited to false information about the borrower’s employment, income, bank accounts, and primary residence," the press release claims.
It continues, "Through their scheme, the defendants fraudulently obtained more than $20 million in loan proceeds in connection with more than twenty fraudulent loans. The majority of the loans went into default, and the majority of the loan proceeds were not repaid."
The government claims that the defendants used the money to "personally enrich themselves and their families." And that's not all.
At the same time that these loans were purportedly being sought, prosecutors charge that the family was also going to local and state government agencies and going on public assistance. Among the programs that they allegedly sought: food stamps, Medicaid and the Home Energy Assistance Program.
U.S. Attorney Preet Bharara references a chart as he announces the indictment charging 12 defendants with bank and wire fraud, during a news conference in White Plains, N.Y., Thursday, Nov.13, 2014. The indictment alleges that 12 members of a single family lied to lenders in order to obtain mortgages and other loans over the past decade. (AP Photo/The Journal News, Matthew Brown)
Irving Rubin was reportedly granted Medicaid at various points, while his son, Yehuda Rubin, was reportedly granted food stamps and Medicaid at various times as well.
And those are only two of the numerous allegations that are made and highlighted in the government's public statement addressing the matter.
U.S. attorney Preet Bharara is calling the charges against the family and other defendants evidence of a "sweeping and cynical fraud," noting that about $700,000 in welfare funds were collected.
"As alleged, the scheme carried out by the Rubins and others ripped off banks, welfare programs, and taxpayers," he said. "It ranged from 2004 to 2014, from Brooklyn to Harlem to Orange County, and the individuals involved alternately played the parts of prince or pauper, depending on which scam was being perpetrated."
Read more about the case here.
(H/T: Daily Mail)