Looks like Thomas Kontogiannis — who’s now in jail for helping launder bribes for his friend, former GOP Congressman Randy “Duke” Cunningham — has more legal woes. He’s been accused in a newly filed lawsuit of participating in a scheme to steal more than $50 million, reports Newsday.
The lawsuit, filed by Manhattan-based DLJ Mortgage Capital, alleges that Kontogiannis and others drew up false loan applications on residential properties in Brooklyn and Queens, which they either owned or planned to develop.
Newsday goes on:
The applications were approved by one of Kontogiannis’ mortgage funding firms, which then obtained the money from DLJ and the other institutions, according to court papers.
DLJ and the other lenders eventually discovered that the mortgages were never recorded, the complaint stated, adding that the scheme was only uncovered when monthly mortgage payments ended. A further investigation revealed that many of the properties were then sold by Kontogiannis and the other defendants, DLJ said in its complaint.
Kontogiannis’ wife Georgia, and other relatives, are also named as defendants.
Cunningham pleaded guilty in 2005 to conspiracy to commit bribery and is serving an eight year sentence in federal prison.
During Cunningham’s recent sentencing, a prosecutor told the judge that there was an ongoing criminal investigation into Kontogiannis’ alleged mortgage fraud.
