Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, February 14, 1991 TAG: 9102140587
SECTION: VIRGINIA PAGE: B-6 EDITION: EVENING
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
The 71-page indictment, handed up by a federal grand jury in Richmond earlier this week, charges Freedlander, 43, with 83 counts of mail, wire and bank fraud; travel fraud; misapplications of funds; and making false reports to financial institutions.
Freedlander was working in the Los Angeles area when arrested Wednesday.
If found guilty, Freedlander faces a possible 425 years in prison and $20 million in fines.
The government contends Freedlander was at the head of the largest fraud operation in Virginia history. Prosecutors charge Freedlander and his family used the company, which had 88 offices in 33 states, to perpetrate frauds that cost investors in excess of $200 million.
The company collapsed in 1988.
Since then, Freedlander's 64-year-old mother, Eve, has been convicted of various counts of fraud and sentenced to 10 years in prison. Freedlander's 33-year-old brother, Benjamin, was sentenced to one year in prison.
Both agreed to plea bargains that require their cooperation and testimony in further prosecutions and investigations of other family members.
The government alleges the company made risky second mortgages to homeowners who were in financial difficulty. The company then sold the second mortgages to investors after inflating the value of the property securing the loan and the homeowner's ability to pay off the second mortgage.
Prosecutors also allege family members used the company to support their luxurious life style at the expense of investors.
by CNB