Bethesda Woman Sentenced in Multi-Million Dollar Mortgage Fraud Scheme

Crime might pay for a while, but sooner or later, you’re gonna have to pay the piper.

That’s what Sabrina Weinberg and others found out after being arrested, indicted and later sentenced for mail and mortgage fraud. She will serve two years in the pokey and three years under supervised release.

According to court documents, Osman Al-Bari, Jamilah Al-Bari, Timothy Reed, Terrence White, Kara McIntosh and others in the mortgage industry paid straw buyers, including Weinberg, $10,000 for each property they bought for them. An additional $10,000 was promised to Weinberg upon the close of each property. Weinberg bought seven homes with loans totaling almost $5 million. In the sentencing, the judge required Weinberg to pay restitution of $2.55 million.

Weinberg bought the properties throughout eight months of 20006. McIntosh was the mortgage broker who created the loan packages for Weinberg’s purchases, which included inflated income and false assets. All those involved in the scheme knew the information was inaccurate. Al-Bari, along with others, had straw buyers claim large balances in local bank accounts. Jamilah Al-Bari worked at one of the noted banks. He sent verification letters falsely validating that all the straw buyers had the claimed assets.

Al-Bari, Reed and White also made up fake invoices billing for renovations that their company, Brotherly Investment Group, claimed it performed on several of the properties. Weinberg’s properties were included in those claimed to have been renovated. All those involved in the scheme knew the renovations never occurred.

The scam was repeated using around 15 straw buyers and 25 properties in Maryland, Virginia and the District of Columbia. During the two year scheme, Al-Bari and others received over $3.5 million using fraudulent means. A number of the properties involved in the scam have already been repossessed by the lender.

Weinberg and McIntosh are from Bethesda, J. Al-Bari is from District Heights, Reed is from Beltsville, White is from Oxon Hill and O. Al-Bari is from Washington, D.C.

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