Baltimore HUD Homes News

Englewood Realtor Arvin Weiss was sentenced Tuesday to seven years in federal prison after a federal jury in Denver convicted him of fraud and witness tampering in what authorities called a sophisticated scheme to cheat mortgage companies that fund federally insured loans.

U.S. District Judge Lewis Babcock also ordered Weiss, 58, to pay restitution of $853,000 to the U.S. Department of Housing and Urban Development (HUD) and of about $5,000 to two banks.

Weiss was found guilty July 16 of eight counts of mail fraud, five counts of wire fraud and three counts of witness tampering.

Weiss could have been given prison sentences of up to 10 years on each witness-tampering count and up to five years on each fraud count.

He was indicted by a grand jury in 2005 after an investigation by the FBI and other agencies.

Prosecutors alleged that Weiss acquired Denver-area homes at a low price and, often after some improvements, sold them at substantially higher prices, usually for two or three times what was paid.

Weiss allegedly targeted Latinos who knew little or no English, many of whom were living in the United States illegally, according to the indictment.

Knowing that the buyers couldnt afford to buy houses or legitimately qualify for home loans, Weiss allegedly arranged for false information to be provided to mortgage companies and HUD, prosecutors said.

During closings, Weiss would provide funds for down payments, concealing that from HUD, prosecutors alleged. The scheme allegedly occurred between 1998 and 2002. Weiss, who is free on bond, was ordered to report to prison within 15 days after a prison is designated for him. The sentencing today of Arvin Weiss should send a strong message [that federal agencies] will aggressively investigate loan origination fraud and that witness tampering will not be tolerated, HUD Inspector General Kenneth Donohue said Tuesday in a statement.