Massachusetts AG Charges Attorney With Recording Forged Mortgage Assignments To Hijack $1M+ In Loan Payoff Proceeds From Pending Real Estate Sales

From the Office of the Massachusetts Attorney General:

• [A] Marblehead attorney was arraigned in Cambridge District Court in Medford for his role in a million dollar mortgage hijacking scheme. Leon Gelfgatt, age 49, is charged with Attempted Larceny, and Uttering (2 counts).

• Massachusetts State Police assigned to Massachusetts Attorney General Martha Coakley’s Office arrested Gelfgatt yesterday as he allegedly attempted to retrieve over $1.3 million dollars in mortgage funds in connection with a sophisticated mortgage fraud scheme.

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• According to authorities, Gelfgatt allegedly identified properties which were under agreement and scheduled for an imminent sale. He then allegedly recorded false documents at the Registry of Deeds indicating that his fake company was the new holder of any mortgages on those properties. He allegedly sought through this scheme to cause mortgage payoff funds to be delivered to the fake company, rather than to the rightful mortgage holders.

For the Massachusetts AG press release, see Marblehead Attorney Arraigned in Connection with Million Dollar Mortgage Hijacking Scheme.

(1) According to the press release, Gelfgatt entered a plea of not guilty and was ordered held on $1 million cash bail by Judge Roanne Sragow. In the event that Gelfgatt posts bail, he has to surrender his Russian passport and wear an electronic monitoring bracelet, the press release states.