Repeat Florida Mortgage Fraud Offender Sent Back to Prison

Broward County man violated terms of criminal probation with new mortgage fraud scheme

December 17, 2007 -- TALLAHASSEE, FL - Florida Attorney General Bill McCollum today announced that a Broward County man was sentenced to 25 years in prison after he violated terms of his criminal probation by committing mortgage fraud. Nicholas Dimonda was originally prosecuted more than 10 years ago for orchestrating a mortgage fraud scheme that defrauded banks, private investors, homeowners and a nationwide title insurance company out of more than $1 million.

Dimonda was convicted in 1999 of multiple criminal charges including grand theft, racketeering and forgery and was sentenced to jail time and 14 years of house arrest and probation, which was violated in 2005 when he became involved in a new mortgage fraud scheme. Both cases were prosecuted by the Attorney General’s Office of Statewide Prosecution.

“We will not tolerate people who prey upon our citizens who are trying to achieve the American dream of home ownership,” said Attorney General Bill McCollum. “This type of fraudulent conduct has a chilling effect on the lending industry in Florida and hurts our consumers who are trying to obtain a mortgage in an already difficult economy.”

Dimonda, 63, was originally arrested in 1996 in Broward County and charged with multiple counts of racketeering and mortgage fraud. After being released on bond for those charges, he was arrested again in Palm Beach County for other criminal behavior. He pleaded guilty to multiple criminal charges and was sentenced to one year in jail to be followed by 13 years of community control and probation in Broward County.

In fall of 2005, authorities with the Office of Statewide Prosecution and the Florida Department of Law Enforcement discovered that Dimonda was engaged in mortgage fraud while on probation for the Broward County case. Dimonda convinced another individual to open a mortgage brokerage company in Hallandale, FL, then named his minor daughter as an officer of the company, assumed the identity of the original owner of the company, and continued to broker mortgages under the false identity.

As part of the fraudulent mortgage brokering he engaged in, Dimonda often falsified employment records for individuals to qualify them for loans they otherwise could not have obtained. From 2001 through 2005, Dimonda deposited approximately $1.2 million from the scheme in bank accounts he controlled, but paid less than $1,000 toward the $1 million restitution owed from the original charges.

Upon learning that he was being investigated for new charges of mortgage fraud, Dimonda fled the country and rented a house in Mexico. In 2005, he returned to Broward County and was arrested after checking into the Broward General Hospital. Today’s sentence was handed down by Judge Andrew Siegel of the Broward County Circuit Court.

Source: Florida Attorney General

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