U.S. Attorney’s Office Collects More Than $330k in Restitution from Defendant in Mortgage Fraud Scheme

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FILE PHOTO: Signage is seen at the United States Department of Justice headquarters in Washington, D.C.

Acting U.S. Attorney Michelle M. Baeppler announced that the Financial Litigation Program (FLP) of the U.S. Attorney’s Office for the Northern District of Ohio collected $333,549.82 in restitution from a defendant convicted of participating in a $40 million mortgage fraud scheme.

According to court records, a notice of judgment satisfaction was approved for Defendant John J. Dubay on Monday, May 23, 2022.  In 2014, Dubay was convicted by a jury of bank fraud and  conspiracy to commit bank fraud.  Dubay and others were part of a mortgage fraud conspiracy involving dozens of properties along Florida’s Gulf Coast.  As part of the scheme, Dubay and others acted as straw buyers who made false statements, misrepresentations and other omissions in the mortgage loan application process.

As a result of the scheme, Dubay and others obtained numerous home mortgage loans under false and fraudulent pretenses with a total face value of approximately $40 million, many of which ended up in default and foreclosure.

Dubay was sentenced to prison in September 2015 and ordered to pay $333,549.82 in restitution for his role in the conspiracy.

This case was investigated by the FBI.  The financial litigation was handled by Assistant U.S. Attorney Suzana K. Koch.  This case was criminally prosecuted by Assistant U.S. Attorneys Robert J. Patton and Om Kakani.

The U.S. Attorney’s Office is responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.

While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.