FOR IMMEDIATE RELEASE
December 1, 2007

Nayyir Al Mahdi Sentenced to Two Years in Prison, $200,000 in Restitution for
Mortgage Fraud Involving 12 Houses

CLEVELAND- Cuyahoga County Prosecutor Bill Mason announced that Nayyir Al Mahdi was sentenced to two years in prison. On October 22, 2007, Mahdi pled guilty to eight (8) counts of Theft, fourth degree felonies, and agreed to pay $200,000 in restitution.Each of his two corporations, Mary Mae Foundation L.L.C and Mahdi and Associates, pled guilty to engaging in a pattern of criminal activity, commonly known as RICO, first degree felonies.

Mahdi, 36, of Shaker Heights, who rehabbed houses, was indicted in January 2007 for mortgage fraud. He was part of a large case that included 61 defendants who were indicted on a total of 269 counts of forgery and theft offenses, telecommunications fraud, and engaging in a pattern of corrupt activity for mortgage fraud that occurred in 2004 and 2005. This case involved 38 properties purchased in Cleveland, East Cleveland, and Garfield Heights with 2.85 million dollars in loans. The indictment comprised 14 key individuals and companies, 45 buyers and sellers and other involved parties, and an appraiser who falsified appraisals.

Mahdi deceived the lenders by engaging in a down payment scheme when he made down payments on behalf of borrowers and then had the title company return the same down payment plus a fee to him when the deal closed. In effect, no down payment was made, thereby deceiving the lender into believing the borrower provided the down payment.  In addition, Mahdi used bogus checks to document rehab work on the properties. The lender needed this documentation to evaluate these loans, but Mahdi did not have the paperwork to support the work that he claimed was done by his companies. To satisfy the lender, he used bogus checks with the assistance and direction of one of the mortgage loan officers who remains under indictment. Finally, he inflated the total value of the rehabilitation projects for these houses. Mahdi's mortgage fraud involved 7 houses in Cleveland and 5 in East Cleveland.

See listing below.

As part of the plea agreement, Mahdi will close down his real estate business and sell all of the remaining properties through a title company selected by the prosecutor's office. The $200,000 restitution obligation will be paid from the sales to the lenders: $152,000 to Argent; $22,000 to New Century, and $26,000 to Finance America. Mahdi further agreed to stay out of the real estate business altogether. Finally, Mahdi has agreed to cooperate with the prosecution with regard to the remaining defendants in this case and any other case involving mortgage fraud.  

Additionally, Debora Cofer, 50, of Warrensville Heights, owner of third party down-payment providers Diversified Financial, pled guilty to two felony theft offenses. She was sentenced to probation and was ordered to pay $7,995.00 in restitution. Darnell Tanner, an appraiser, pled guilty to two felonies and he was sentenced to probation and ordered to pay $1000.00 in restitution. Tanner will lose his appraiser license, and both of these defendants are prohibited from working in the real estate business.

Mahdi's Properties

2269 East 100 St., Cleveland, Ohio 44104

1259 Hayden, East Cleveland, Ohio 44112

10501 Shale, Cleveland, Ohio 44104

1610 Lakefront, East Cleveland, Ohio 44112

7922 Medina, Cleveland, Ohio 44103

12700 Forest Hill, East Cleveland, Ohio 44112

2888 East 111th St., Cleveland, Ohio 44104

14613 Strathmore, East Cleveland, Ohio 44112

1310 Lakefront, East Cleveland, Ohio 44112

1257-59 East 146th St., Cleveland, Ohio 44112

2882 East 112th St., Cleveland, Ohio 44104

6418 Varian, Cleveland, Ohio 44103

Case number is: 490671