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Weston Man Gets 33 Months for Mortgage Fraud

WESTON, Conn. – A 47-year-old Weston man was sentenced to 33 months in federal prison for his role in two mortgage-fraud conspiracies, according to U.S. Attorney David B. Fein.

Genaror Hathaway conspired with his husband, Steven Kottage , to commit wire fraud by making false statements to H&R Block Home Mortagage Inc. in connection with a mortgage for a home on Fire Island, N.Y., court documents state.

In addition, Hathaway and Kottage conspired to commit bank fraud by submitting a materially false loan application to Washington Mutual to refinance a condominium in Hillsboro Beach, Fla. A co-defendant, Mary Ellen Durso, served as the straw owner for the condo to obtain the fraudulent loan proceeds for the benefit of the two men. Fein said two schemes enabled Hathaway and Kottage to defraud Wells Fargo Bank and Freddie Mac out of more than $600,000.

The investigation also revealed that both men fraudulently appropriated nearly $750,000 from Hathaway’s clients while he was serving as a closing attorney for real estate transactions. When confronted by those clients, Hathaway and Kottage devised the mortgage fraud schemes to repay the stolen money, Fein said.

On April 29, Hathaway pleaded guilty to two counts of conspiracy and one count of tax evasion. On April 21, Kottage pleaded guilty to two counts of conspiracy stemming from these schemes. He was sentenced last month to 41 months of imprisonment.

On Dec. 14, 2010, Durso pleaded guilty to one count of conspiracy and five counts of filing false tax returns. On March 9, she was sentenced to three years of probation, the first six months of which she must serve in home confinement.

When his prison sentence is over, Hathaway will be sentenced to three years of supervised release.

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