FHA Mortgages

Malta developer to pay $805,000 to settle claims concerning FHA mortgage

malta-developer-to-pay-805000-to-settle-claims-concerning-fha-mortgage

MALTA – The owner of Ellsworth Commons will, among other things, pay a cash settlement to investigate allegations that he made improper payments to his family trusts in lieu of paying a federal mortgage and a false statement to the U.S. Department of Housing and Federal Housing Administration Urban Development has filed (FHA) in connection with these payments, the US attorney said on Thursday.

Palm Beach Gardens, Fla., Owner Eugene Rosen agreed to pay $ 805,000 and never again participate in government housing programs to resolve civil liability, according to a U.S. Attorney’s news release.

Ellsworth Commons is a mixed-use settlement on Route 9 near Northway Cross. It includes commercial units and apartments for middle-income tenants and the mortgage was covered by the FHA.

Rosen delayed the mortgage on Ellsworth Commons for nearly two years, from April 2016 to January 2018, during which time he repaid independent loans with revenue from Ellsworth Commons instead of paying the mortgage, the U.S. Attorney General said.

Rosen informed the FHA that he had paid his mortgage holder all the money he had after project-related expenses. But then the US Department of Housing and Urban Development did some research and found that he was using it Ellsworth Commons’s income to instead pay off loans from his family trusts.

“Eugene Rosen has falsely certified that Ellsworth Partners used all available funds to pay off his state-insured home mortgage for low-income families when in fact he was transferring some of those funds to his family’s escrow accounts,” said the acting US attorney Antoinette T. Speck in a statement. “Our office will continue to work in partnership with HUD to hold accountable those who violate the requirements of the Affordable Housing Program.”

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