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11/11/2007

News / Mortgage broker pleads guilty to fraud. A judge will decide punishment for preying on seniors in Pinellas and Hillsborough.

TAMPA - Mortgage broker Michael W. Danish pleaded guilty Monday and could spend decades in prison for a mortgage fraud scheme that ripped off more than 20 victims.

Danish, 47, will be sentenced Dec. 7. He has no plea agreement with prosecutors, which means his punishment will be left up to a judge.

The Statewide Prosecutor's Office pursued the Brandon man after mostly poor senior citizens in Pinellas and Hillsborough counties complained that he pocketed their money instead of helping pay off debts and investing their money as promised.

From March 2002 to May 2004, Danish preyed on people looking to use home mortgages to purchase air conditioning systems, according to investigators from the Florida Department of Financial Services. A local air conditioner salesman referred interested homeowners to Danish for financing.

The mortgage broker would obtain mortgages in amounts exceeding the homeowners' requests or obtain loans the homeowners knew nothing about, investigators say.

In February, authorities said he had bilked the homeowners of approximately $400,000.

Also arrested was Donna Whitlock, owner of Bay Point Title Inc., who investigators said allowed Danish to close loans outside of her office and notarized the signatures without the signees being present. She will be sentenced Dec. 7 after pleading guilty to notary fraud.

Danish pleaded guilty to aggravated white collar crime, failure to disburse funds in accordance with agreements and notary fraud. He faces a maximum of 65 years in prison.

Both defendants will be on the hook for restitution.

"It's been a long time coming for the victims," said Joseph Broadus of Gulfcoast Legal Services, which represented some of Danish's St. Petersburg victims. "These are people who lost more than money. They lost their peace of mind."

Colleen Jenkins can be reached at cjenkins@sptimes.com or 813 226-3337.

By COLLEEN JENKINS, Times Staff Writer
Sources: http://www.sptimes.com/2007/11/06/Hillsborough/Mortgage_broker_plead.shtml

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