New York - 17 Arrested In Massive Queens Mortgage Scam

New York - Seventeen people are under arrest, charged with perpetrating a massive mortgage fraud that ripped off millions from banks. The scheme also left dozens of people broke, without homes or on the verge of losing their homes. 

Queens District Attorney Richard Brown announced the charges against those accused of running a huge mortgage fraud scam. But what that really means is homes were being pulled out from under people without them realizing -- good people, like Welma Massiah, of South Ozone Park. 

"It was very frightening. Many nights you can't sleep. I went through so much," Massiah told CBS 2 HD. 

Assistant DA Mariana Zelig explained how the scheme worked. Phony "helpers" find people in mortgage distress like Massiah, then put her mortgage in somebody else's name. 

"The scheme comes in when they don't tell the homeowner that they've lost ownership in the house," Zelig said. 

The DA said lawyers like Trevor Rupnarian lied to the banks about the straw buyers, claiming to vouch for them with phony documents to get new mortgages and pocket the difference. CBS 2 HD saw Rupnarian's gigantic home, by the way. A woman who answered the door said he wasn't home. We told her way: 

CBS 2 HD: "Do you know that he's been arrested?" 

She didn't. 

"Queens County has been identified as ground zero for mortgage fraud," said Ricardo Velez of the state Banking Department. 

The authorities said this group stole 26 properties, robbed $3 million in equity from people's homes and took the banks for another $13 million in phony mortgage loans. 

Five of the 17 accused are fugitives. One is in India.

CBS 2