Saturday, September 3, 2011

NYC Congressman, Other Queens Pols Could Feel The Squeeze After Indictment Of Suspect Accused Of Falsifying $50M In Home Loan Applications

In New York City, the New York Post reports:

  • The walls may be closing in on Rep. Gregory Meeks with the indictment of a real-estate broker pal who gave him $40,000. Edul Ahmad faces up to 30 years in prison if convicted of mortgage fraud in an indictment Friday.

  • Though the indictment makes no mention of his political ties, the threat of a lengthy sentence could give the feds leverage to question Ahmad about Meeks and other Queens pols.(1)

  • Ahmad, 43, is accused of falsifying $50 million in loan applications for borrowers who lacked the means to pay them back and pocketing "fees and commissions in excess of those permitted by the lenders," the indictment says.

  • His relationship with Meeks has been under intense scrutiny since the Queens Democrat revealed the $40,000 payment last year. Earlier this month, a House ethics panel announced that it would investigate Meeks over the 2007 payment.

  • Meeks has said that the $40,0000 was a loan from Ahmad, but he did not report it on his personal financial disclosure forms until 2010, after the FBI questioned Ahmad about it.

Source: Meeks' mortgage 'lender' indicted.

(1) As has been observed by at least one learned federal judge:

  • "When a conspiracy is exposed by an arrest or execution of search warrants, soon-to-be defendants know that the first one to "belly up" and tell what he knows receives the best deal. The pressure is to bargain and bargain early, even if an indictment has not been filed." United States v. Moody, 206 F.3d 609, 617 (6th Cir. 2000) (Wiseman, J., concurring) (referring to the not-uncommon 'race to the prosecutor's office' that breaks out among participants in an uncovered criminal conspiracy).

Whether Ahmad, if guilty, considers to "belly up" and "sell out" others on whom he may have some 'dirt' remains to be seen.

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