Ex-Milford mayor candidate pleads guilty

Genevieve Salvatore, former Milford Democratic mayoral candidate exits federal court in Bridgeport where she was arraigned on mortgage fraud conspiracy charges on Monday, February 25, 2013. Genevieve Salvatore, former Milford Democratic mayoral candidate exits federal court in Bridgeport where she was arraigned on mortgage fraud conspiracy charges on Monday, February 25, 2013. Photo: Brian A. Pounds, File Photo Photo: Brian A. Pounds, File Photo Image 1 of / 1 Caption Close Ex-Milford mayor candidate pleads guilty 1 / 1 Back to Gallery

NEW HAVEN -- A lawyer who ran unsuccessfully as the Democratic candidate for mayor in Milford in 2009 pleaded guilty Tuesday to participating in a multimillion-dollar mortgage fraud.

Genevieve Salvatore, 42, admitted to Chief U.S. District Judge Janet C. Hall that she committed mail fraud by sending falsified U.S. Department of Housing and Urban Development forms following mortgage closings.

The forms itemize the services, fees and payments charged and paid in a closing.

Assistant U.S. Attorney David Huang, Assistant U.S. Attorney Paul J. Fishman of New Jersey and Special Assistant U.S. Attorney John McReynolds are prosecuting the case against Salvatore and seven others in a conspiracy that ran for several years. Salvatore is represented by Andrew Bowman.

The 10-page plea-bargain agreement worked out between Bowman and the U.S. Attorney's Office here and in New Jersey includes a preliminary calculation of Salvatore's recommended sentencing guidelines. The guidelines recommend a sentence of between 41 and 51 months in prison.

However, the guidelines are only recommendations. Bowman could argue and Hall could impose a lesser term when Salvatore is sentenced on Feb. 18. Salvatore is free on $100,000 bond and is free to continue to practice law.

The indictment also seeks forfeiture of $15,842 from Salvatore. Additionally, her plea to a felony conviction puts her license to practice law in jeopardy.

However, the state does not consider a conviction in federal court to have occurred until sentence is imposed. Once that happens, it would be up to the state disciplinary counsel to seek a suspension or disbarment.

A former chairman of Milford's Economic Development Commission, she was defeated in a four-way run for Milford's mayor in 2009. She garnered 3,824 votes to Mayor James Richitelli Jr.'s 8,525.

Salvatore is one of four lawyers who were charged in this scheme. The others, Lawrence Dressler and Jeffrey Weisman, of New Haven, and Bradford Rieger, of East Haven, each pleaded guilty to conspiracy charges. Only Rieger has been sentenced. He received a two-year term.

The case involves fraudulently obtained real estate mortgages through the use of false loan applications, loan documents and HUD document statements. Huang said Salvatore was involved in 13 fraudulent closings from December 2006 to February 2007. Court documents estimate the loss attributable to Salvatore was nearly $2.5 million.

The scheme included more than 50 mortgages obtained over a two-year period on mult-family homes in New Haven. Huang claims the mortgage paperwork listed prices for the homes that ranged from $30,000 to $145,000 over the actual sales price. All of the homes were in New Haven and purchased by either Ronald E. Hutchison Jr. or Jacquess Kelly, both New Yorkers. Kelly is also charged in this case.