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HONOLULU (HawaiiNewsNow) - Mortgage broker Albert L. Joy and his attorney left U.S. District Court Thursday refusing comment on allegations Joy committed mortgage fraud.
Joy and 13 others are named in two Federal indictments that allege they committed conspiracy and wire fraud.
Seven of the fourteen are also charged with the more serious offense of falsifying information on loan applications.
"Essentially, they're accused of using their mortgage businesses as fraud factories in which they created false documentation for straw borrowers," FBI Special Agent Tom Simon said.
Simon said between 2005 and 2008 the brokers allegedly faked the earnings and assets of borrowers - . real people who agreed to the scheme.
"None of them were legitimate individuals who sought to buy a house," he said.
The FBI said the brokers conducted transactions on homes all over Oahu.
Simon said mainland mortgage lenders who were duped granted the loans, the brokers pocketed the money, and the houses fell into foreclosure.
"When these things go into foreclosure status we all lose because the housing prices in Hawaii become depressed. No one wants foreclosed houses on their blocks," Simon said.
One broker worked out of an office at 725 Kapiolani Boulevard. Others worked out of their homes.
Some of them are related.
One is a certified public accountant.
And one was arrested by the FBI in Seattle.
The indictment alleges the fourteen made millions on mortgage fraud.
"The houses that we went into for the arrests were pretty opulent. They were more than any of us could ever afford," Simon said.
Two of the brokers, a husband and wife, live in a Kahala home now on the market for $2.6 million.
If convicted the brokers face from five to thirty years in prison and from $250,000 to $1 million in fines.
"We take these things very seriously," Simon said.
Joy pleaded not guilty and was released on $50,000 bond.
He is scheduled to be back in court in October.