Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Sunday, July 21, 2024 | Back issues
Courthouse News Service Courthouse News Service

Guilty Pleas For Subprime Mortgage Fraud

MANHATTAN (CN) - A man and his mother pleaded guilty to defrauding home lenders of more then $200 million while they ran subprime mortgage broker AGA Capital, now known as Lending Universe. Garri Zhigun, his mom Galina Zhigun, and their employee Maryann Furman all face up to 30 years in prison at their Jan. 5 sentencings.

Twenty-six other people have been charged in this mortgage fraud ring, and eight have pleaded guilty, federal prosecutors said. They are accused of lying on loan documents, using straw buyers and coordinating the scam with an attorney, real estate appraisers and loan officers. The defendants got millions of dollars of fees for arranging the dishonest loans, the U.S. Attorney's Office said.

AGA Capital operated out of Brooklyn from 2004 to 2006, then changed its name to Lending Universe. Galina Zhigun, 54, was the owner and registered broker; her son supervised the operations and Furman was the office manager. Garri Zhigun also was ordered to forfeit $2.5 million; his mom and Furman must forfeit $1 million apiece.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...