Feds Covering Up Senator’s Mother’s Mortgage Fraud Ring

The US Attorney General has been provided documents implicating US Senator’s Mother in a mortgage fraud ring and several officials helping to cover it up.

Alexander Higgins
August 12 ,2012

NY Attorney Michael G. Bouchard has informed me that on July 17th he sent a letter to to United States Attorney General Eric Holder providing comprehensive evidence of federal government corruption in Albany, New York .

The corruption involves the ongoing coverup by top federal law enforcement officials of Senator Gillibrand’s Mother’s mortgage fraud ring.

The letter sent to Attorney General Holder documents a series of mortgage fraud scams that have been committed by Polly Rutnik, a New York Attorney and the mother of a United States Senator Kirsten Gillibrand, and her co-conspirators.

The supporting attachments in the letter implicates Polly Rutnik, a former NYPD officer, Aaron Dates, the partner of the law firm of a former Albany Mayor and several others conspiring together to carry out the sophisticated mortgage fraud schemes.

The letter further points out that any the who are associated with the government have eluded the attention of federal prosecutors investigating the ring.

At the same time those who participants not associated with the government have been arrested and convicted or are currently being actively prosecuted.

Bouchard’s explains in the letter to Holder that in the process of covering up the fraud of the Senator’s mother the federal prosecutor’s are also on a witch hunt to find scapegoats to pin her numerous crimes on.

The letter implies federal prosecutors are targeting Bouchard for this purpose even though he was merely the settlement lawyer in one of the numerous cases of fraud.

Bouchard further contends he had no idea the settlement he was hired for was a fraudulent transaction yet federal prosecutors are trying to frivolously target him.

On the other hand, Attorney Bouchard’s supporting exhibits provide clear evidence of  fraud committed by  Polly Rutnik and her co-conspirators in repeated scams before and after the settlement he was hired for..

But as I detail below, Attorney Bouchard’s and the supporting exhibits provide clear evidence of  Senator’s mother knowingly and willfully committed fraud as did her co-conspirators to perpetrate the scams.

Those documents show several conspirators filing fraudulent mortgage documents with Polly Rutnik being at the center of the foul play.

I pick up a few pages in where Bouchard explains his office turned over to federal investigators, upon their subpoena, mortgage closing documents in 2005.

[...] back to the subpoena that was delivered by Fattarusso and Hensle to my office in July 2005. Since one of the entities named in the subpoena was Team Title, the subpoena embraced files that involved Team Title as the title company for real estate transactions. This would include files wherein mortgage fraud may have been committed by other parties that were participants in real estate transactions that involved Team Title and/or its principals.

One oft he files that was given to the federal government in 2005 was a file wherein Polly Rutnik (doing business as “Clinton Avenue Associates”) sold property located at 163 Dove Street, Albany, New York to a person named Luis Santana. Team Title was the title company for this transaction. When the files from my office were given to the federal government in 2005, members of my office staff made Copies of approximately 7 files for our records as a random sample. One of the files that was Copied is the tile for the 163 Dove Street transaction.

Polly Rutnik, being an attorney familiar with real estate, represented herself at this transaction. The purchaser was represented by Michael Kornstein, Esq. lt is my understanding that Michael Kornstein was previously a law partner With Thomas Whalen, the former mayor of the City of Albany, and, that Kornstein is now a partner in an Albany law firm named Cooper, Erving and Savage. Also present at the transaction was a person named Aaron Dare, the mortgage originator for the buyer’s mortgage. lt is my understanding that Aaron Dare was previously the President of The Urban League of Northeastern New York. lt is also my understanding that Aaron Dare is now serving time in prison relative to his purported involvement in Certain mortgage fraud schemes.

After I hired my lawyer last summer, he reviewed our photocopies of the 7 files. While examining this particular file, in less than 5 minutes my lawyer discovered an irregularity regarding the closing. The closing statement had a purchase price of $90.000.00. However, in the file, my attorney discovered a title report issued by Tearn Title prior to the closing which stated a much lower purchase price of $33,000.00. Copies of the pertinent pages from that title report are attached hereto. It is common practice for a title company to reflect the purchase price from a contract in the pre­closing title report. Therefore, there had to exist a contract signed by Polly Rutnik as the seller with the sales price of $33,000.00.

Upon closer examination of this file, a number of other facts have been discovered, which will be detailed herein. It appears that Polly Rutnik as the seller actively participated in a mortgage fraud scheme to inflate the sales price from the actual price of $33,000.00 up to the phony price of $90,000.00. This allowed the purchaser, through Aaron Dare, to obtain a mortgage of $72,000.00 (which is an 80% loan to value ratio based on the phony price of $90,000.00). At the closing, Polly Rutnik’s sale funds were disbursed on her behalf based solely on the hidden purchase price of $33,000.00. After all disbursements were made, including the buyer’s closing costs, the remaining funds from the $72,000.00 mortgage were distributed to the buyer and a company named Invision Real Estate, LLC (lnvision was a company that was operated by Aaron Dare [now in jail for the scam] and a now deceased Albany Police detective named Kenneth Wilcox). lnvision received funds from this transaction in the amount of $25,872.85. This transaction matches the pattern of fraud used by Aaron Dare and Kenneth Wilcox on numerous other properties in the Albany area.

If there is any doubt of Polly Rutnik’s involvement it is set to rest in the HUD statement in which Polly hand wrote and signed that she paid the transfer tax on the inflated $90,000 price.

Attached please find a copy of the HUD Settlement Statement that was handwritten at the Closing by Polly Rutnik. Also, attached is a Copy of the typewritten HUD Settlement Statement that was signed at the Closing. Please note that in the seller’s Column on Page 2 of the HUD, Polly Rutnik paid a realtor’s Commission of $2,310.00, which just happens to be the standard realtor’s Commission of 7% basedon a sales price of $33,000.00 (not $90,000.00).

The seller’s Column on page 2 of the HUD also shows that Polly Rutnik paid a transfer tax of $360.00. ln Albany County, New York, the seller’s transfer tax is based on a Calculation of $4.00 for even/ $1,000.00 of the sales price (in this Case, the Calculation is $4 x $90,000/$1,000 = $360.00). However, Polly Rutnik really only paid $132.00 in transfer tax, which just happens to be the tax based on the real sales price of $33,000.00 (this Calculation would be 4 x 33 = $132.00).

Bouchard then points out how amazing it is that the government has had 59,000 hours  and had not problems convicting other perpetrators involved in the widespread mortgage fraud scam and did not find this.

Yet his own lawyer uncovered the fraud within 5 minutes.

The fact that the government has overlooked this file is truly amazing. Perhaps it may have something to do with the political Connections involving the Rutnik family, especially the positions in the federal government held by Polly Rutnik’s daughter, Kirsten Gillibrand. The government has been in possession of this file since around July 2005, which would be approximately 59,000 hours (yes, that would be FIFTY-NINE THOUSAND HOURS). The government has unlimited resources with all types of analysts, investigators, agents, accountants and lawyers that had ample time to review this file, and, yet, they have done nothing about it. Please remember that when my attorney first examined this file, it only took him less than 5 minutes to discover the irregularities that occurred in this particular transaction.

5 minutes versus 59,000 hours is quite the disparity.

Next Bouchard points out how the  federal investigator’s  has actually took this file from 3 different sources including when the feds took it from him, when they took Team Title’s records and third being when the took all of Aaron Dare’s records.

Moreover, during the prosecution of Aaron Dare this transaction was mysteriously excluded from the FBI’s evidence against him and even more suspiciously is  mortgage prosecutions for other fraud investigation contain a complete and detailed list of the fraudsters  transactions with a glaring exception being the case of Aaron Dare.

In the federal government’s criminal “Information” filed against Aaron Dare on 11-13-06, Count Three entitled “Mortgage Fraud Conspiracy” provides dates for his mortgage fraud activity from about December 2003 through December 2005. The Polly Rutnik to Luis Santana sale closing occurred on August 21, 2003, but of course, it was not included in the government’s criminal “Information”. Furthermore, none of the government’s Aaron Dare documents provide a list of the properties relating to his mortgage fraud, and yet the government’s paperwork for other fraudsters in the Albany area contain detailed lists of all their subject properties. For your information, a copy of the criminal “Information” is attached hereto.

This of course leads to another government covered up anomaly because the records show that Aaron Dare actually tripled dipped on this property with three different ownership assignments the first involving Polly Rutnik.

The problem here is that the original ownership assignment to Polly Rutnik has no purchase price listed in the records – just an ownership assignment – which should have automatically raised a red flag.

This also means that someone insisted that no purchase price be recorded.

The public records for the ownership of this property at 163 Dove Street can be found on a web­site entitled www.albanycounty.com From an examination of the ownership history for this property, as well as various news sources, it appears that Aaron Dare actually “triple dipped” on this property. The first dip occurred on August 21, 2003 with Polly Rutnik’s involvement in mortgage fraud. There is an “Assignment of Contract” in the County Clerk’s records wherein Invision Real Estate, LLC assigns and transfers the 163 Dove Street contract to Luis Santana. This assignment was executed by Kenneth Wilcox, Aaron Dare and Luis Santana on August 21, 2003, and, the assignment was recorded in The Albany County Clerk’s Office on December 29, 2003 in Book 2752 at Page 894.

Therefore, there had to be an original contract with Polly Rutnik as seller and Invision Real Estate, LLC as buyer. For your information, a copy of the assignment is attached hereto. Oddly enough, there is no purchase price mentioned in the assignment. Somebody must have insisted that no purchase price be referenced in this assignment.

Now things get real interesting because the numerous mortgage records in for Polly’s partner in crime – Invision Real Estate, LLC  are full of anomalies in the form of extremely low purchase prices – similar to the transaction detailed above -  that investigators should have flagged for fraud but was ‘nicely overlooked by the investigators’

It is interesting to note that numerous other assignments recorded in The Albany County Clerk’s Office for contracts on other properties involving Invision Real Estate, LLC all contain low purchase prices. The mortgage fraud scheme for these other properties followed the scheme for this file, as the purchase prices on those other files were then inflated so that the borrowers could obtain excessive mortgages. Invision Real Estate, LLC received a large check in this transaction, but that was nicely overlooked by the government.

From there this transaction gets more interesting, with the house being passed around to a few owners only to end up back in the hands of an Aaron Dare “affiliated” company with a mortgaged price that coincidentally is the exact price of the over-inflated value of the original mortgage with Polly.

Further on Bouchard outlines the complicity of the officials in covering this up.

Richard Hartunian is currently the head United States Attorney for The Northern District of New York. While he was in private practice, he Worked as an attorney for a law firm in Albany, New York named Devine, Piedmont & Rutnik. The Rutnik in that law firm is an attorney named Christopher Rutnik, and, he is Polly Rutnik’s brother-in-law as well as Kirsten Gil|ibrand’s uncle. The office for that law firm was located in a building that was owned by a partnership that included Polly Rutnik and her husband at the time, Douglas Rutnik (he is also a lawyer and a well connected lobbyist). It is not difficult to figure out Why Hartunian has willfully ignored this file.

In addition to Hartunian, this file was also willfully ignored by the following individuals that had either direct access to this file or they should have been aware ofthe existence of this file:

Glenn Suddaby. He is currently a federal judge for The Northern District of New York and he is also the former head United States Attorney for The Northern District of New York. While he was the heed US Attorney, he did nothing on this file. ‘

Robert Storch. He is an Assistant United States Attorney for The Northern District of New York and he handled the governments investigation of Aaron Dare.

Andrew Baxter. He is currently a federal judge for The Northern District of New York and he is also the former head United States Attorney for The Northern District of New York. While he was the head US Attorney, he did nothing on this file.

Tina Sciochetti. She was the Assistant United States Attorney that handled the Team Title investigation which resulted in this file being turned over to the federal government around July 2005.

Thomas Capezza. He is a former Assistant United States Attorney for The Northern District of New York and he previously handled the government’s frivolous investigation against me.

Michael Olmsted. He is an Assistant United States Attorney for The Northern District of New York and he is currently handling the government’s frivolous investigation against me.

Thomas Fattarusso. He is a special agent for the internal Review Service and he is involved in the government’s frivolous investigation against me.

Michael Hensle. He is a special agent for the Federal Bureau of Investigation and he was involved in the government’s frivolous investigation against me.

For those who want to read the entire document:

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