Crime & Safety
Passaic Co. Man Admits Role In $6M Fraud Scheme
Mehdi Kassai, 36, admitted damaging properties to lower their value and manipulated short sales of properties.
A Passaic County man Tuesday admitted his role in a $6 million real estate fraud scheme, authorities announced.
Mehdi Kassai, 36, also known as "Mike Kassai," pleaded guilty in Newark federal court to two counts of bank fraud, wire fraud, and money laundering, U.S. Attorney Craig Carpenito announced.
From June 2013 to March 2017, Kassai and others got mortgage lenders to participate in "short sale" transactions. He admitted that he damaged properties to lower their value, limited the number of bidders who tried to buy properties, and used false documents and straw buyers in transactions, Carpenito announced.
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The bank fraud and wire fraud counts are punishable by up to 30 years in prison and a $1 million fine, or twice the gross gain to the defendant or loss to the victim. The money laundering charge is punishable by up to 10 years in prison and a $250,00 fine.
Kassai also agreed to turn in the proceeds from the scheme. Sentencing is scheduled for April 18.
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Email: daniel.hubbard@patch.com
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