Food Stamp Collection- A whole family from Brooklyn consisting of 12 members were arrested Thursday for fraud allegedly for appearing poor to collect food stamps and for acting wealthy to obtain mortgages.
The court papers revealed that the money collected by the family from banks totaled to $20 million from the mortgages and worth $700, 000 from food stamp collection. The 12 members of the Rubin family were all charged for the offense.
Some of the arrested family members include Yehuda Rubin, 29, and his father, Irving Rubin, 58, Irving Rubin's wife, son, three brothers and five in-laws, who all pleaded not guilty for the bank fraud and false statement, charges on food stamp collection. The Rubin family may incur 30 years maximum penalty if proven guilty.
"They alternately played the part of prince or pauper depending on which scam was being perpetrated," U.S. Attorney Preet Bharara claimed at a news conference in White Plains courthouse. "Regardless of whether they were posing as rich men or poor men, they were always con men."
Aside from the Rubin family, a real estate lawyer and an appraiser were also indicted for the food stamp collection and fraud to gain mortgages.
According to Daily Mail, U.S. Attorney Preet Bharara said at a news conference in the White Plains courthouse that the family appeared to bank or lenders showing their employment, assets, income and residence proof so that they will be given mortgages.
One couple who was seized allegedly claimed to have income of $25, 000 when applying for mortgages from lenders and claimed a salary of $180 for food stamp collection approval and Medicaid assistance.
The Rubin family claimed owning 18 Brooklyn properties so that lenders will approved their mortgages at once. Some also appeared poor for food stamp collection and other government benefits. All the money they collected were used in paying their credit cards, own home mortgages and their real estate projects.
The case on food stamp collection and fraud given to the alleged suspects covers a span of ten years as the family has been doing the same thing since 2004. Authorities also served search warrants and confiscated a total of 23 properties with estimated value of $50 million.
