Former Md. resident gets 30 months in fraudulent city real estate scheme

Flipping case involved more than 100 houses

April 11, 2003|By John B. O'Donnell | John B. O'Donnell,SUN STAFF

A federal judge sentenced a former Maryland man to 30 months in prison yesterday for his role in a fraud scheme in which he and co-defendants illegally flipped more than 100 Baltimore houses over a 3 1/2 -year period.

Glenn Rosofsky, 37, now of Encinitas, Calif., had pleaded guilty in January to two counts of mail fraud. He and his three co-defendants, who also entered guilty pleas, admitted that they bilked mortgage lenders out of as much as $2.5 million. They bought low-cost city houses and sold them to aspiring landlord-investors for more than they were worth, using falsified documents and inflated appraisals to get mortgages for their buyers.

Rosofsky and Henry Kimball, who had been in the telemarketing business with him, started a company called Housemax Inc. in the spring of 1998 to buy and sell the houses. They operated the scheme until October 2001 and then moved to California.

Rosofsky's lawyer, James J. Gitomer, told U.S. District Judge Marvin J. Garbis in U.S. District Court in Baltimore that his client and Kimball, 38, are in business together in California - "the refinancing business, refinancing mortgages and consolidating debt."

On Wednesday, Garbis sentenced Kimball to 37 months in prison. Under federal guidelines, Kimball's term is longer because he has four previous convictions and was on probation while he was involved in the scheme.

Garbis also gave each man a three-year term of supervised release after completion of the prison sentences. He said neither could get into the real estate or mortgage business during that time unless they sought his permission and prosecutors had a chance to comment on the application.

Two men who went to work for Kimball and Rosofsky after they started Housemax were sentenced earlier.

Darnell Acree got a 15-month term, and Bryan P. Rosenberg received 28 months.

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