U.S. Attorney: Merrick man faces 30 years in prison for mortgage fraud

Merokean Gerard Canino faces a maximum of 30 years in prison after pleading guilty to conspiring to commit wire fraud and bank fraud in connection with a $66 million mortgage fraud scheme.

Preet Bharara, the United States Attorney for the Southern District of New York, announced the guilty plea on Monday, April 9.

Canino, 51, who owned the mortgage brokerage firm First-Class Equities, was indicted last August for leading a scheme that involved the falsification of legal documents to obtain mortgages from financially distressed homeowners, and disbursing the proceeds among himself and 13 other associates, all of whom were indicted.

First-Class Equities, which had offices in Oceanside and Old Westbury, first declared itself as a mortgage brokerage firm in 1988, according to a spokesperson from the Federal Bureau of Investigation.

The FBI’s probe began in March 2010, and focused on Canino’s activities between 2004 and 2009. During that time, the scheme involved more than 100 homes, including properties in Merrick and Bellmore.

While Canino faces a maximum prison sentence of 30 years, the plea bargain states that based on his offenses, and his lack of criminal history before the scheme, Canino will serve eight to 10 years in prison. If he violates any terms of the agreement, the sentence can increase to 30 years.

Canino also faces a maximum of five years’ supervised release, and a maximum fine of $1 million. And he must forfeit the $66 million he acquired in the fraudulent scheme. In return for the plea, the U.S. Attorney’s Office for the Southern District of New York agreed that it would not further prosecute Canino for his participation in the fraud from 2004 to 2009.