NY AG Squeezes Guilty Pleas From 4 For Roles In Alleged Sale Leaseback, Equity Stripping Foreclosure Rescue Racket; 1 Awaits Trial On 23 Felony Counts

In Albany, New York, the Times Herald Record reports:

• Members of an Albany-based company who ran a lease buyback program that cost several local homeowners their homes have admitted their roles in a mortgage-looting scheme in a deal with the state Attorney General's Office.

• Four employees of Rivertown Financial pleaded guilty in Albany County Court last month to felony charges that included grand larceny, scheme to defraud and falsifying business records, after the Attorney General's Office filed criminal complaints. The company's lawyer, Kevin Wheatley, awaits trial after being indicted by an Albany County grand jury on 23 felony charges, including first-degree grand larceny and scheme to defraud.

• Rivertown bought more than 100 properties, including several in Orange and Ulster counties, from homeowners threatened with foreclosure, offering to pay off their mortgages and let them remain in the homes as tenants until their credit improved. The company then took out new mortgages on the properties.

• Most of the properties, which were in the names of Rivertown employees or other straw buyers, ended up in foreclosure and the company went bust in 2008. Here's what the four employees told investigators, according to court records:
  
  Rivertown CEO Geoffrey Goldman admitted he faked mortgage information, including using company money as assets for his straw buyers. His brother, company Vice President Jonathan Goldman, admitted the brothers used mortgage money for personal expenses, including cruises, casino gambling and personal trainers.
  
  Rivertown's sales director, Jessica Peryea, admitted she acted as a straw buyer.The company's loan officer, Jordan Laccetti, admitted he received the mortgage information from Geoffrey Goldman and knew the mortgages would never be repaid.

• The four will have to pay restitution as part of their plea agreements, but sentencing dates haven't been set.

Source: Four guilty in scheme to profit from shaky mortgages.