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Weston Man Gets 41 Months for Mortgage Fraud

WESTON, Conn. ? Steven J. Kottage, 45, of Weston, was sentenced Wednesday to 41 months in prison, followed by five years of supervised release, for his role in two mortgage fraud conspiracies.

Kottage, along with his husband, Genaro Hathaway, conspired “to commit wire fraud by making materially false statements to H&R Block Home Mortgage, Inc., including a false loan application, W-2, employment verification, and pay stub in connection with a mortgage on a home on Fire Island, New York,” according to a statement issued by U.S. Attorney David Fein.

In addition, Kottage and Hathaway “conspired to commit bank fraud by submitting a materially false loan application to Washington Mutual” to refinance a condo in Florida. A co-defendant in the case, Mary Ellen Durso, served as the straw owner of the condo in order to obtain the fraudulent loan proceeds for the benefit of the two men.

In a release, Fein states, “Through both schemes, Kottage and Hathaway defrauded Wells Fargo and Freddi Mac of more than $600,000.”

On April  21, Kottage pleaded guilty to two counts of conspiracy and Hathaway pleaded guilty to two counts of conspiracy and one count of tax evasion.

Fein said that on Dec. 14, 2010 Durso pleaded guilty to one count of conspiracy and five counts of filing false tax returns. On March 9, 2011, she was sentenced to three years' probation, with the first six months in home confinement.

Hathaway is currently awaiting sentencing.

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