NEWARK, NJ – Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet A. Elmas, 32, a U.S. citizen residing in Turkey, have been charged with conspiracy to commit bank fraud, as announced by U.S. Attorney Philip R. Sellinger. Both were employees of a New Jersey-based mortgage lending business and appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court, subsequently released on $200,000 unsecured bond each.
From 2018 through October, Gallo and Elmas allegedly used their positions within the company to orchestrate a mortgage fraud scheme. They are accused of falsifying loan documents to obtain lower mortgage rates under the guise that the properties were primary residences, whereas they were actually rental or investment properties. This fraudulent activity enabled them to secure loans with favorable terms improperly.
The charge of conspiracy to commit bank fraud could result in up to 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The investigation, which led to their arrests, involved special agents from the FBI and the Federal Housing Finance Agency’s Office of Inspector General.