2002-10-18 -- Mederos, Ciro -- Guilty Plea -- News Release

Attorney Admits Conspiring with West New York Businessman Rene Abreu to Commit Mail Fraud

NEWARK - An attorney licensed to practice in New Jersey pleaded guilty today to conspiring with Hudson County businessman Rene Abreu and others to commit mail fraud, U.S. Attorney Christopher J. Christie announced.

Ciro Mederos, 43, of Teaneck, whose law practice is in Union City, pleaded guilty to a one-count Information, charging him with conspiring with Abreu and other employees and associates of The Mortgage Pros, Inc., to defraud several financial institutions by fraudulently submitting fictitious loan-related documents to these institutions. The goal was to induce the institutions to issue residential loans to clients of The Mortgage Pros, Inc., according to Assistant U.S. Attorneys Carlos Ortiz and Deborah Goldklang.

Abreu was one of 11 individuals indicted in a 43-count Indictment in May. The Indictment charged multiple conspiracies including mail fraud, extortion and cash structuring in excess of $2 million, as well as several bank fraud schemes, money laundering, bribery of bank officials and more.

Mederos appeared today before U.S. District Judge Joseph A. Greenaway, Jr. to plead guilty in a cooperating plea agreement with the U.S. Attorney's Office. No sentencing date was set. The charge carries a maximum penalty of 5 years in prison and a $250,000 fine.

The West New York corruption investigation continues.

Mederos admitted that his responsibilities as an attorney included representing buyers and sellers at real estate closings for buyers who had obtained mortgages through The Mortgage Pros, Inc. Mederos further admitted entering into an illegal agreement with Abreu and others to prepare, sign and submit false HUD-1 settlement statements containing materially false information on behalf of clients of The Mortgage Pros, because these clients did not have the financial means necessary to obtain loans through legitimate means.

Under U.S. Sentencing Guidelines, Judge Greenaway will determine Mederos' actual sentence based on a formula that takes into account the severity and characteristics of the offense and Mederos' criminal history, if any.

Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Christie credited Special Agents of the FBI in Newark, under the direction of Special Agent in Charge Louie F. Allen; and Special Agents of the IRS Criminal Investigation section in Newark, under the direction of Special Agent in Charge Anne D. Fahy, for their work in developing the case.

The Government is represented by Assistant U.S. Attorney Ortiz, Chief of the Government Fraud Unit in Newark, and Assistant U.S. Attorney Goldklang of the Special Prosecutions Division in Newark.

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Defense Counsel: Nelson Aponte, Esq., Union City.