Second Co-Conspirator In Arbors Mortgage Fraud Scheme Sentenced To Eight Months In Federal Prison

Gary Blankenship received eight months in federal prison in the Arbors mortgage fraud scheme. Blankenship also pleaded guilty on February 4, 2016, to conspiracy to commit wire and bank fraud.

The plea agreement states that entities controlled by the co-conspirators contracted to purchase The Arbors. The Arbors is an apartment complex in Hillsborough County. The new owners then engaged in a plan to convert the complex from rental apartments to condominium units.

Brendan Bolger aided the developers in the sale of a number of units through his company Capital Management Guarantee. Bolger created an addendum to the purchase contract offering buyers various incentives. He offered rental supplements and cash to defray maintenance costs. He also offered a design credit to upgrade the units’ amenities. Bolger paid Blankenship a kickback from his company’s bank account for the amount of the design credit when the buyers canceled the design credit. Blankenship’s role in the conspiracy as a realtor consisted of marketing The Arbors units by promising buyers undisclosed incentives. Bolger and Blankenship along with other co-conspirators failed to disclose material facts to buyers’ mortgage lenders. 

Bolger paid Blankenship a kickback from his company’s bank account for the amount of the design credit when the buyers canceled the design credit. Blankenship’s role in the conspiracy as a realtor consisted of marketing The Arbors units by promising buyers undisclosed incentives. Bolger and Blankenship along with other co-conspirators failed to disclose material facts to buyers’ mortgage lenders. 

A federal jury also found another co-conspirator Tampa Real Estate Agent Joseph L. Pasquale of Fort Myers guilty of one count of conspiracy to commit bank fraud and four counts of bank fraud earlier this year as part of the Arbors mortgage fraud scheme.