Two men plead guilty in $3.6M housing co-op embezzlement scheme
Penalties and broader implications
Gentile entered his guilty plea on September 14, agreeing to forfeit at least $750,000 and pay a minimum of $1.5 million in restitution, and was released on a $100,000 bond.
Pitcher pleaded guilty the following day, agreeing to forfeit at least $635,629 and pay restitution of no less than $2.5 million. He was released on a $250,000 bond. No sentencing dates have been announced.
The case lands at a time of heightened scrutiny of fraud across the residential real estate sector. In the segments where mortgage brokers need to watch closely for elevated risk, the multifamily category has drawn consistent warnings from fraud analysts.
According to Cotality’s Q1 2026 National Mortgage Application Fraud Risk Index, approximately one in 29 multifamily applications showed indications of fraud risk, compared to the industry-wide average of one in 129.
“Lenders should remain diligent on fraud reviews, especially around investor and multi-unit homes,” Matt Seguin, senior principal of fraud solutions at Cotality, previously told Mortgage Professional America.
