Mortgage Broker Admits Aiding Developer in Unethical Acts

A mortgage broker admitted Wednesday that he helped a real estate developer cheat a bank by falsely pledging to cover a $25 million check the developer had deposited from a closed account.

The New Jersey mortgage broker, Joseph Kohen, pleaded guilty to a single charge of bank fraud, which carries as much as 30 years in prison and a fine of $1 million. He was released on $100,000 bond pending a June 27 sentencing hearing.

Solomon Dwek, the real estate developer, is accused of cheating PNC Bank out of about $22 million by depositing two $25 million checks, drawn on a closed account, then withdrawing nearly half the money. He was arrested in May on federal bank fraud charges.

Since then, hundreds of pieces of property linked to Dwek’s New Jersey housing market holdings have become embroiled in litigation.

A state judge is now attempting to sort conflicting claims from creditors who maintain that Dwek owes them millions as part of the New Jersey mortgage arrangement.

Michael B. Himmel, an attorney representing Dwek, did not immediately return a request for comment Tuesday. He has said that Dwek, who is free on $10 million bond, denies the bank fraud charge.

A telephone message left Tuesday evening at the office of Kohen’s lawyer, Ephraim Savitt, also was not immediately returned.

Kohen, who helped the developer secure the mortgage, may get substantially less time behind bars if he cooperates with investigators.

During his appearance, Kohen said he could provide information about the real estate deal besides what he disclosed during his plea.

SOURCE: Arizona Daily Star