Tag Archives: Bryant A. Carbonell

FORMER CONTRACTOR OF A FLORIDA PROPERTY MANAGEMENT COMPANY SENTENCED TO SERVE TIME IN PRISON FOR WIRE FRAUD

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WASHINGTON —A former repair contractor of a  Florida property management company was sentenced to serve time in prison for his  participation in a wire fraud scheme related to housing repairs made under a  contract between Ocwen Loan Servicing LLC, and the U.S. Department of Veterans  Affairs (VA), the Department of Justice announced today.

Ronald B. Hurst was sentenced by  Judge Philip G. Reinhard of the U.S. District Court for the Northern District  of Illinois in Rockford to serve 24 months in prison for his role in the  conspiracy.

In addition, a second former repair  contractor, Bryant A. Carbonell, was sentenced by Judge Reinhard to serve six  months of home confinement for his role in the conspiracy.  Hurst and Carbonell were sentenced to pay $147,825  jointly and severally in restitution to the VA.  Hurst pleaded guilty on Feb. 15, 2013, to two  wire fraud counts of a 10-count indictment and Carbonell pleaded guilty on  Sept. 21, 2012, to the same charges.

An indictment, originally filed in  January 2012, charged Hurst, Carbonell and Ryan J. Piana with conspiring to  commit bribery and wire fraud from at least January 2006 until as late as  September 2007.  Hurst, Carbonell and Piana  were also charged with bribery and wire fraud.  As part of the plea agreements, the United  States agreed to dismiss the remaining counts against Hurst and Carbonell at  the time of their sentencing.
“By paying kickbacks in exchange for  contracts to companies they secretly owned or with which they were affiliated,  the conspirators created the illusion of competition while illegally steering  contracts to themselves,” said Bill Baer, Assistant Attorney General in charge  of the Department of Justice’s Antitrust Division.  “Today’s sentencing reaffirms the Antitrust  Division’s commitment to prosecuting schemes that undermine competition in the  VA Mortgage Guarantee Program.”
Hurst and Carbonell were former  contractors for West Palm Beach, Fla.-based Ocwen Loan Servicing LLC. Piana was  a former residential sales manager at Ocwen.  According to court documents, Ocwen managed  foreclosed properties under contract with the VA, which guaranteed qualifying residential  mortgages for veterans.  Under the  contract between the VA and Ocwen, if a veteran defaulted, Ocwen completed  necessary repairs and re-sold the property.  Proceeds from the re-sale of VA-acquired  properties directly benefit the VA by reducing the cost of guaranteeing  residential mortgages to veterans.
According to the charges, Hurst and  Carbonell paid Piana to steer housing repair work to companies affiliated with Hurst  and Carbonell.  Piana recruited other  Ocwen employees into the scheme and paid them on behalf of himself and the  other conspirators.  The department said  in order to execute the scheme, the conspirators sent, or caused to be sent,  various transmissions via wire communication.
This is the third case involving  properties managed by Ocwen under contract with the VA. On Dec. 3, 2010,  Benjamin K. Graves, also a former Ocwen employee, pleaded guilty in U.S.  District Court in Orlando, Fla., to wire fraud in connection with the VA contract.   On Jan. 25, 2012, Joshua R. Nusbaum,  another former Ocwen employee, and Andrew J. Nusbaum, a former Ocwen  contractor, pleaded guilty in U.S. District Court in Orlando, Fla., to wire  fraud in connection with the same VA contract.  Piana pleaded guilty to the same counts as  Carbonell and Hurst on July 16, 2013, in U.S. District Court in Orlando, Fla.  Piana was sentenced on Sept. 30, 2013, to serve  24 months in prison and to pay $147,285 in restitution to the VA.

The sentence announced today resulted  from a federal investigation of housing repair contracts performed under  contract with the VA.  The investigation  is being conducted by the Antitrust Division’s Chicago Office and the Central  Field Office of the U.S. Department of Veterans Affairs, Office of Inspector  General, Criminal Investigations Division, located in Hines, Ill. Anyone with  information concerning suspicious activity relating to housing repairs  performed under a contract with the VA should contact the Antitrust Division’s Chicago Office at 312-353-7530 or visit  www.justice.gov/atr/contact/newcase.htm.

Former Employee of Florida Property Management Company Sentenced to Serve Time in Prison for Wire Fraud

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A former residential sales manager of a Florida property management company was sentenced to serve 24 months in prison today in the U.S. District Court for the Middle District of Florida, in Orlando, for his participation in a wire fraud scheme involving housing repair contracts for the U.S. Department of Veterans Affairs (VA), the Department of Justice announced.

Ryan J. Piana pleaded guilty on July 16, 2013, to two wire fraud counts of a 10-count indictment. In addition to his prison sentence, U.S. District Court Judge Roy B. Dalton Jr. also sentenced Piana to pay $147,285 in restitution to the VA.

The indictment, originally filed in January 2012, in the U.S. District Court for the Northern District of Illinois, in Rockford, charged Piana, Ronald B. Hurst and Bryant A. Carbonell with conspiring to commit bribery and wire fraud from beginning at least as early as January 2006 continuing until as late as September 2007.  Piana, Hurst and Carbonell were also charged with bribery and wire fraud.  As part of the plea agreement, the United States agreed to dismiss the remaining counts against Piana at the time of his sentencing.

“Steering contracts to a company in return for kickbacks distorts the competitive process and harms consumers,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “The Antitrust Division will not tolerate anticompetitive activity that defrauds the Department of Veterans Affairs.”

Piana is a former residential sales manager at West Palm Beach, Fla.-based Ocwen Loan Servicing LLC, and Hurst and Carbonell are former contractors for Ocwen.  According to court documents, Ocwen managed foreclosed properties under contract with the VA, which guaranteed qualifying residential mortgages for veterans.  Under the contract between the VA and Ocwen, if a veteran defaulted, Ocwen completed necessary repairs and re-sold the property.  Proceeds from the re-sale of VA-acquired properties directly benefit the VA by reducing the cost of guaranteeing residential mortgages to veterans.

According to the charges, Hurst and Carbonell paid Piana to steer housing repair work to companies affiliated with Hurst and Carbonell.  Piana recruited other Ocwen employees into the scheme and paid them on behalf of himself and the other conspirators.  The department said in order to execute the scheme, the conspirators sent, or caused to be sent, various transmissions via wire communication.

Carbonell pleaded guilty to the wire fraud counts on Sept. 21, 2012.  Hurst pleaded guilty to the same counts on Feb. 15, 2013.  Both Hurst and Carbonell entered their guilty pleas in the U.S. District Court in Rockford. Their sentencing dates are scheduled for Dec. 5 and 6, 2013, respectively.

This is the third case involving properties managed by Ocwen under contract with the VA. On Dec. 3, 2010, Benjamin K. Graves, also a former Ocwen employee, pleaded guilty in U.S. District Court in Orlando to wire fraud in connection with the VA contract.  On Jan. 25, 2012, Joshua R. Nusbaum, another a former Ocwen employee, and Andrew J. Nusbaum, a former Ocwen contractor, pleaded guilty in U.S. District Court in Orlando to wire fraud in connection with the same VA contract.

The sentence announced today resulted from an ongoing federal investigation of housing repair contracts performed under contract with the VA.  The investigation is being conducted by the Antitrust Division’s Chicago Office and the Central Field Office of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, located in Hines, Ill.