Hudson Valley Mortgage Broker Charged

Attorney General Spitzer today announced that an Orange County mortgage broker has been charged with scheming to steal money from prospective home buyers who believed he was helping them obtain bank financing.

"The purchase of a home is the largest single financial commitment most people will ever make," said Spitzer. "The dream of home ownership should not be twisted into a financial nightmare. I am committed to protecting consumers from the unscrupulous actions of those who violate consumers trust."

John R. Betts, 42, of New Windsor was arrested by New Windsor Police on Thursday and arraigned before Town Justice Donald Suttlehan. The defendant is charged with two felonies: Grand Larceny in the Third Degree; and Scheme to Defraud in the First Degree. He was remanded to Orange County Jail in lieu of $25,000 bail.

The complaint alleges that Betts, while operating J. Betts Financial Services, Inc., of Fishkill, solicited clients for the purpose of securing loans from lenders and thereby obtained more than $3,000 from one named victim. The hearing on the bail application revealed that the police investigation showed that the defendant’s scheme may have entailed thefts of over $200,000 from various unnamed victims.

The hearing further revealed that multiple schemes were employed allowing Betts to access his clients’ assets. A series of elaborate transactions were used to conceal Betts’ actions from his clients. For instance, he requested that clients demonstrate credit worthiness by providing funds for an escrow account; and to cover mortgage points and lock-in fees. In reality, no escrow accounts existed and money was deposited into Betts’ personal account. To disguise his activities, which took place in Orange, Dutchess, and Rockland counties, Betts allegedly forged commitment letters to his clients from potential lenders.

The case is being prosecuted by Assistant Attorney General Joseph Hester of the Attorney General’s Criminal Prosecutions Bureau, in association with the New Windsor Police Department (NWPD). A nine-month investigation led to the arrest in which the Attorney General’s Office and NWPD were joined by the New York State Police in Newburgh and Wappingers Falls; and the Orange County District Attorney. The investigation is ongoing.

Charges contained in the felony complaint are allegations and that the defendant is presumed innocent until proven guilty.