5 Arrested In Mortgage Scam

JOSH POLTILOVE and THOMAS W. KRAUSE The Tampa Tribune

Published: Jul 20, 2007

TAMPA - They used trust and guile to rip off dozens - and maybe many more - in a multimillion dollar mortgage scam, local and state law enforcement officials say.

The victims were mostly the poor, the elderly and minorities.

A three-year investigation into the scam has netted five arrests so far, including two Hillsborough County residents, the officials announced Thursday.

Several law enforcement agencies said Scott A. Almeida, 31, of Lithia, and Frank S. Giffone, 32, of Tampa, convinced mostly minority homeowners in poor areas of Florida to take out home loans. The two told homeowners that they would use the money to make significant home improvements, according to the Florida Department of Law Enforcement.

Almeida and Giffone, arrested Wednesday in Hillsborough County, submitted loan applications that included false, forged or counterfeit documents, FDLE officials said.

Orson W. Benn, 36, and Samuel L. Green, 27, used their positions in Argent Mortgage's White Plains, N.Y., office to subvert company policy and approve the loan packages, an FDLE media release shows.

Money was diverted into the bank accounts of those involved in the scheme, and the victims were left with large home loans and received little, if any, home improvement.

Those charged also were involved in creating fake documents to secure the loans, including altered or fake W-2 forms, income verification forms, check stubs and credit reports, FDLE officials said.

Thirty-one of the fraudulent loans included in an arrest affidavit total nearly $3 million, an FDLE release shows.

Through several mortgage broker businesses, Almeida and his associates submitted about 180 loans through Argent Mortgage totaling nearly $18 million.

'Unspeakable' Allegations

"The allegations brought against these individuals are unspeakable," state Attorney General Bill McCollum said in a statement. "To prey on the hopes and dreams of these people who were simply trying to improve their homes is a terrible scheme and my office is committed to prosecuting those involved to the fullest extent of the law."

Victims live in Hillsborough, Pinellas, Polk, Lee, Orange, Monroe and Broward counties, FDLE special agent Ellen Wilcox said.

Agnes Gary, 80, said that three years ago when he promised he would renovate the Ybor City home she had owned since 1963, Giffone helped her take out a $42,000 loan. But he never fixed her home or gave her a cent, said her daughter, Viola Gary.

Agnes Gary's credit has been cleared, but the family sold the house rather than take a chance on being swindled again, Viola Gary said.

"Whatever happens to them, they deserve it," Agnes Gary said of those arrested. "They didn't only do this to me and my family. They messed up a lot of people in this neighborhood and other places. Whatever happens, it's OK to me. I just ask God to bless them and forgive them for what they did, because they know not for what they're doing."

Almeida, Giffone, Benn, Green and Adrienne L. White, 36, face charges of racketeering and conspiracy to commit racketeering, and some face additional charges. A sixth person, Bradford C. Peck, will face charges but has not been apprehended, the agencies said.

"This investigation is not over," said Lance Newman, regional director of FDLE's Tampa office. "It is continuing, and we do expect additional charges and arrests in the future."

Benn, White and Almeida face grand theft charges. White and Almeida also face charges of obtaining a mortgage by false representation.

Almeida and Giffone, whose lawyer could not be reached for comment, are in the Orient Road Jail. Almeida's bail is set at $875,000 and Giffone's at $655,000. The others were arrested out of state.

Almeida's lawyer, Todd Foster, said he couldn't comment in detail on the case until given more information. "At this point in time, we're going to enter a plea of not guilty," he said. "I just haven't seen any of the proof."

Many home loans were submitted to Argent Mortgage, one of the nation's largest "subprime" mortgage companies, law enforcement agents said. The company, which agents described as also a victim in this case, has reached out to homeowners affected and worked to resolve financial issues, said Robert C. Robillard, an investigator with the Hillsborough County Consumer Protection Agency.

Company Helps Homeowners

"We have zero tolerance for fraud," said Chris Orlando, an Argent spokesperson. "When we find an employee involved in fraudulent activity, we take action up to and including terminating an employee. In this situation, we worked closely with the authorities. The customers that were impacted have [been] made whole, and we've taken other steps to assist them."

Those facing charges have spent much of the money. Almeida bought a $16,000 engagement ring, agents said.

Involved in the investigation with the FDLE were: the Tampa Police Department, Hillsborough County Consumer Protection Agency, Pinellas County Department of Justice and Consumer Services and Florida Attorney General's Office of Statewide Prosecution.

The investigation began in 2004 when some victims spoke to Tampa police and Hillsborough County's consumer protection agency about incomplete construction work.

Eventually, a task force was formed, issuing about 250 subpoenas and reviewing tens of thousands of documents, according to a release.

"What those people did was wrong," Viola Gary said. "A lot of people lost their homes because they did not know what to do - a lot of elderly people. There's a God that sits high and looks low, and whatever those people get, they deserve."

Researcher Michael Messano contributed to this report. Reporter Josh Poltilove can be reached at jpoltilove@tampatrib.comor (813) 259-7691. Reporter Thomas W. Krause can be reached at

tkrause@tampatrib.com or (813) 259-7698.