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Couple Indicted on Mortgage Fraud

A Weston couple and a Milford woman have been indicted on 11 counts of conspiracy to commit mortgage fraud, according to U.S. Attorney for Connecticut David B. Fein. The losses from the alleged conspiracy exceeded $500,000, Fein said in a press release. Many of the counts carry maximum 30-year prison terms.

Steven Kottage, 44, and Genaro Hathaway, 46, were charged with mortgage fraud during the purchase of a home on Fire Island, N.Y. Kottage and Hathaway, who are married, filed a false loan application for the property to Wells Fargo Home Mortgage in Kottage's mother's name, the release states. Hathaway, a former attorney in Connecticut and New York, was the closing attorney.

The release says Hathaway subsequently bought the property in his own name from Kottage's mother's estate and made a false loan application to H&R Block Home Mortgage. Instead of using the money from the sale to pay off loans to Wells Fargo, the pair used it to pay off a different real estate transaction, according to the release.

They, along with Mary Ellen Durso, 53, are also charged with filing a false loan application to Washington Mutual to refinance a condo in Hillsboro Beach, Fla. In addition, Hathaway faces charges of tax evasion.

To report suspected mortgage fraud activity, call the Connecticut Mortgage Fraud Task Force at (203) 333-3512 or send an email .

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