Lawyer Louis Cherico Convicted in Mortgage Fraud Scheme

Lawyer Is Convicted in Mortgage Fraud Scheme
The New York Law Journal by Mark Hamblett  -  November 3, 2011

An Eastchester attorney was convicted late Tuesday in a mortgage fraud scheme that prosecutors say netted him and his co-conspirators millions in illegal loan proceeds. Louis E. Cherico, 70, was convicted following a three-week trial in Manhattan federal court of conspiracy to commit bank fraud, bank fraud related to three separate mortgages and one count of money laundering. He was acquitted of two additional counts of bank fraud and one count of obstruction of justice.  Southern District Assistant U.S. Attorneys Nicholas L. McQuaid and Jason A. Masimore proved to the jury that Mr. Cherico played a key role in a fraudulent scheme to purchase multi-million dollar properties in Westchester County, serving as the lawyer who negotiated and closed transactions that were based on loan applications, contracts of sale, deeds, real estate transfer documents and title reports containing false or misleading information about the income, assets, existing debt and credit-worthiness of the borrower as well as the chain of title on the properties and the sale price of the homes.  Mr. Cherico, once the principal of Cherico, Cherico & Associates in White Plains, also laundered the illegal proceeds from one transaction by transferring the proceeds from an account he controlled to one controlled by co-conspirator Dominick DeVito, who pleaded guilty and is now serving four years and three months in prison.  Mr. Cherico faces a maximum of 30 years in prison on the conspiracy and bank fraud counts, and a maximum of 20 years on the money laundering count. Mr. Cherico is scheduled to be sentenced by Judge Colleen McMahon in March. Yesterday, defense lawyers Susan C. Wolfe of Hoffman & Pollok and Patrick T. Burke of Burke, Miele & Golden gave the court notice of their motion to seek a judgment of acquittal and a retrial for their client.

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Eastchester Lawyer Convicted, Faces Up To 30 Years in Real Estate Fraud Scheme
The Journal News by Timothy O'Connor  -  November 3, 2011

An Eastchester lawyer faces up to 30 years in a federal prison after a jury in Manhattan found him guilty in connection with a fraudulent real estate investment scheme.  Louis Cherico, 70, was convicted of bank fraud, money laundering, and conspiracy to commit bank fraud following a three-week trial before U.S. District Judge Colleen McMahon.  He was cleared by the jury of two counts of mortgage fraud and one count of conspiracy to obstruct justice.  Cherico's lawyer, Susan Wolfe, said Cherico's defense team intends to file post-trial motions seeking acquittal and move forward with appeals if those motions fail.  "We are disappointed in the jury's verdicts on the counts where he was convicted," Wolfe said. "We're gratified by the acquittals," she added.  The charges against Cherico, who practiced in New York City and Westchester County, involved three mortgages on multimillion-dollar properties in Westchester, prosecutors said.  Several others were previously convicted as co-conspirators in connection with the scheme.  Dominick DeVito, 46, of Harrison, the ringleader, is serving 51 months in prison. Robert DiDonato, 41, of Purchase was sentenced to 18 months in prison. John Liscio, 51, of Eastchester received 12 months behind bars. Louis Cordasco Jr., 46, of West Harrison, was also sentenced to 12 months in prison.  Cherico served as the closing attorney for the purchases in 2002 that were arranged by using phony documentation to obtain mortgage loans — which were sometimes in excess of 100 percent of the purchase price, prosecutors said.  The homes were in Eastchester, Rye, and Purchase. Cherico then helped DeVito launder the proceeds from one of the transactions, prosecutors said.  He is scheduled for sentencing March 6.  In addition to the prison time, he faces a possible $1 million fine.

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