One Of The Top 10 LOs In The US Indicted On One Count Of Conspiracy To Commit Bank Fraud In Alleged Mortgage Fraud Scheme

Federal prosecutors in New Jersey have indicted Christopher Gallo with conspiracy to commit bank fraud. The mortgage industry has recognized Gallo as one of the US’s Top 10 LOs.

The industry publication Scotsman Guide also named him the fourth-ranked LO in America.

Gallo was employed by NJ Lenders Corporation until October 2023. NJ Lenders Corporation primarily operates in New Jersey, New York and Pennsylvania.

Gallo began originating mortgages at CrossCountry Mortgage in fall 2023,

Special agents at the FHFA-OIG’s office also named Gallo’s assistant Mehmet Elmas in the complaint. 

The federal court has released Gallo and Elmas on a $200,000 bond.

The Department of Justice alleges in their complaint:

From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans,

The pair are accused of routinely misleading mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates.

As a result, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates.

The alleged conspiracy also included falsifying property records and financial information of prospective borrowers.

NJ Lenders Corp told the media that the company is cooperating with law enforcement.

The DOJ stated in the complaint that Gallo originated more than $1.4 billion in loans from 2018 through October 2023. Scotsman Guide placed Gallo’s total volume at $1.175 billion for 2022. One-third of his loans were purchases. The remaining loans were refinances.

CrossCountry Mortgage removed his webpage from their site last week.

Read More About About Busted Mortgage Fraudsters On MFI-Miami.com.