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A Connecticut real estate agent has been sentenced to prison for his role in a multi-year scheme in which he fraudulently conducted short sales, according to the Department of Justice (DOJ).
Officials said 46-year-old James Macchio, of Glastonbury, served as the manager of a real estate agency. He is accused of defrauding his clients by conducting fake short sales of government and bank-owned properties.
Macchio was sentenced to 42 months in prison and two years of supervised release during a court appearance in Boston Thursday.
He has been ordered to forfeit over $621,000 and pay more than $2.5 million in restitution, the DOJ said.
Officials said Macchio and another real estate agent used straw buyers to acquire properties owned by banks, federal agencies, bankruptcy trustees and other mortgage holders.
The scheme included a shell company set up by a co-conspirator, posing as a construction company. Macchio hid his identity as a buyer of short sale properties. He also minimized sale prices in order to increase gain by flipping these properties, authorities said.
The DOJ said Macchio and others submitted fake renovation bids from contractors to their clients. Once their clients accepted a fake bid, they’d hire different contractors at a much lower cost, pocketing the difference.
Macchio is also accused of fraudulently obtaining a pandemic relief loan.
One of Macchio’s co-conspirators, Sheldon Haag, was sentenced to a year in prison in October.
