Rosicki, Rosicki & Associates Accused Of Scamming Fannie Mae
New York Foreclosure Mill Rosicki, Rosicki & Associates Accused Of Scamming Fannie Mae
New York foreclosure mill Rosicki, Rosicki & Associates allegedly used its affiliated companies to systemically overcharge Fannie Mae for foreclosure-related services. The Department of Justice alleges the firm defrauded Fannie Mae out of millions of dollars.
The DOJ alleges the firm engaged in a scheme with two of its wholly-owned affiliates to markup foreclosure services. The complaint also alleges the firm overcharged Fannie Mae by as much as 750%. The two wholly-owned subsidiaries are Enterprise Process Service and Paramount Land.
The law firm specializes in foreclosures and executes foreclosures in New York.
The two founding partners of the firm own and control both Enterprise and Paramount. Enterprise handles the process serving and Paramount is their title search company.
The three companies performed foreclosure-related work for Fannie Mae’s mortgage servicers from May 2009 through the present.
The complaint alleges that the foreclosure mill used its own companies to serve process and perform title searches.
That’s what the firm wanted mortgage servicers to think. The FHFA-OIG and the USAO say something different.
The complaint states that Enterprise and Paramount actually used third-party vendors to perform the majority of the work in question. They then applied exponential markups to the services performed. The two companies claimed they were doing the work themselves.
Enterprise and Paramount then submitted those allegedly marked up expenses.
The firm claimed the bills to be true and accurate. This is despite knowing that the servicers would submit claims to Fannie Mae for full reimbursement of the expenses.
Fannie Mae paid millions of dollars in falsely inflated foreclosure expenses to the three companies.
Ironically, firm owner Tom Rosicki is also a former FBI agent according to his profile on the firm’s website.
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