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A senior member of a five-person team responsible for originating billions in loans for a New Jersey mortgage lender has been charged with participating in a large-scale mortgage fraud scheme. Christopher J. Gallo and Mehmet A. Elmas were accused of misleading mortgage lenders by falsely claiming that clients intended to reside in properties they were actually purchasing as investments.
Gallo and Elmas were arrested and released on a $200,000 unsecured bond. Their former employer, NJ Lenders Corp., stated that they are fully cooperating with the investigation and that the actions of Gallo and Elmas appear to have been designed to benefit themselves financially while abusing the trust of the company.
Prosecutors revealed that the team, led by Gallo, originated over $1.4 billion in loans from 2018 to October 2023. The scheme involved submitting loan applications with false information about property usage and financial details to secure mortgage loans at lower rates.
Gallo, a top mortgage originator as ranked by Scotsman Guide, joined CrossCountry Mortgage in 2023. Despite the allegations, Gallo’s current employer stated that he is not employed by the company.
The investigation was conducted by FBI agents and the Federal Housing Finance Agency, Office of Inspector General. Gallo and Elmas are facing charges of conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison and a $1 million fine.
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A mortgage fraud scheme involving Christopher J. Gallo and Mehmet A. Elmas, former employees of NJ Lenders Corp., has come to light. The duo misled mortgage lenders by claiming that their clients intended to live in homes that were actually purchased as investments. They have been charged with conspiracy to commit bank fraud, which could result in 30 years in prison and a $1 million fine. The investigation, conducted by the FBI and the Federal Housing Finance Agency, revealed that the team originated more than $1.4 billion in loans from 2018 to 2023. Gallo, a top mortgage originator, joined CrossCountry Mortgage after leaving NJ Lenders Corp. The company is fully cooperating with the authorities, and both Gallo and Elmas have been released on bond. Join Inman Connect Las Vegas for answers to your big questions and new business opportunities in July 2024.
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