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2010 Top Stories: Mortgage fraud

Published December 31. 2010 4:00AM   Updated December 31. 2010 5:00AM

Three years after a mortgage-fraud conspiracy involving New London loan officer Jose Guzman unraveled, more indictments were handed down by a grand jury in June, this time involving both Guzman associates and Syed A. "Ali" Babar, the alleged "de facto leader" of a second, multimillion-dollar scam centered in the city.

Of the 15 statewide indictments announced in June as part of a mortgage-fraud initiative called Operation Stolen Dream, 14 involved city-based conspiracies. Among those indicted were an appraiser, a mortgage broker and two attorneys, one of whom was unlicensed.

In September and October, five more indictments were handed down in the Babar case.

The two scams cost lenders more than $6.5 million in losses, according to the indictments, and involved more than 135 properties, most in New London and Norwich.

- Lee Howard

Town News

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