6/28/2011 U.S. ATTORNEY RECOVERS $75,000 IN CIVIL PENALTIES AND DAMAGES FROM APPRAISER IN MORTGAGE FRAUD SUIT

The US Attorney Southern Dist NY & Deputy Inspector General US Dept Housing & Urban Development settled mortgage FRAUD CLAIMS against appraiser pursuant to consent order approved by US Dist Judge Castel. The appraiser will pay $75,000 in penalties & damages to the US, and be barred from performing appraisals in sales involving federally-insured mortgage loans for several years. According to allegations in the Complaint and the consent orders filed in Manhattan federal court:

The appraiser -JAMES J. GOLDBERG, JJG REAL ESTATE APPRAISAL SERVICES ("GOLDBERG allegedly conspired with a group of flip sellers, and a mortgage lender, to commit mortgage fraud in connection with the sale of residential properties in the New York area.

All sales for which GOLDBERG provided appraisals involved loans insured by the U.S.Department of Housing & Urban Development ("HUD"), and all defaulted within months after the closing.

Pursuant to the consent order as to GOLDBERG, which was approved by the Court on June 27, 2011, GOLDBERG agreed to pay $75,000 in civil penalties to the United States. GOLDBERG also agreed not to participate in any HUD program for three years, and agreed not to conduct or supervise any appraisals in connection with transactions that involve HUD-insured mortgage loans.