Two Charged With Swindling Financially-Troubled Homeowner

Rockland County District Attorney Thomas P. Zugibe and state Banking Department Superintendent Richard H. Neiman announced Tuesday in New City the arrest of two men for swindling a distressed Tomkins Cove homeowner on the verge of foreclosure.

Edward DeFrancesco Sr., 59, of 19 Jordan Drive, Highland Lakes, N.J., is charged with one count of Grand Larceny in the Second Degree, a class "C" Felony. And, Glenn Allyn, 52, of 14 Crescent Drive, Elmsford, is charged with one count of Grand Larceny in the Third Degree, a class "D" Felony

DeFrancesco was involved with a company that helped Rockland homeowners avoid foreclosure. Instead of helping a Tomkins Cove resident save their home, the defendant purchased the distressed house from the victim and fraudulently applied for a mortgage by misprepresenting the actual purchase price of the residence by over $160,000, according to Zugibe.

By misrepresenting the true sale price of the house, DeFrancesco was able to obtain a loan for more money from the bank than he should have been able to, Zugibe said.

Allyn was an attorney involved with a company that helped Rockland homeowners avoid foreclosure. At the real estate closing of the victim, Allyn, who was supposed to be representing the bank, stole a $5,000 check that he was not entitled to, and that should have gone to the seller of the home, Zugibe said.

Allyn has since been disbarred for unrelated matters.

"This Office will not allow vulnerable homeowners to become easy prey for financial opportunists and scam artists," Zugibe said. "By prosecuting these predators and educating the public, we are holding offenders accountable and empowering residents."

Neiman said this case exemplifies one of the worst types of mortgage fraud.

"Under the guise of helping a distressed homeowner avoid foreclosure, these defendants took advantage of him for their own financial gain," Neiman said. "The Banking Department is actively addressing these types of mortgage fraud on multiple fronts – by seeking legislative reform, engaging in aggressive regulatory scrutiny and seeking criminal prosecutions. The Department, through its Criminal Investigations Bureau, is committed to assisting local law enforcement agencies pursue those individuals that seek to take advantage of people in economic peril."

Zugibe said mortgage fraud destroys families, devastates communities and undermines our financial institutions.

"We will make certain that at-risk homeowners desperate for relief from their financial situation are not targeted in these difficult times," Zugibe said. "My Office, in partnership with the Banking Department, will use every tool available to investigate, prosecute and prevent such criminal activity."

The arrests of both men resulted from an investigation conducted by the Rockland County Special Investigations Unit and the state Banking Department's Criminal Investigations Bureau.

DeFrancesco was arraigned in the Town of Stony Point Justice Court by the Honorable Frank Phillips. Bail was set at $15,000 cash or bond. He is due to return to court on June 28. If convicted, he faces 15 years in state prison.

Allyn was also arraigned in Stony Point by Phillips. He was released on $5,000 cash bail and is due to return to court on July 1. In addition, he was ordered to surrender his pistol and permit. If convicted, Allyn faces seven years in state prison.

Both men are prohibited from working in the mortgage industry, Zugibe said.