2 get prison for complex $100M mortgage scam in NY

[September 22, 2010]  NEW YORK (AP) -- Two men convicted of leading a New York-based $100 million mortgage fraud scheme that ranged from inflating appraisals to having corrupt lawyers steal sale proceeds are headed to prison.

AFG Financial Group Inc. President Aaron Hand was sentenced Tuesday in Manhattan to 8 1/3 to 25 years in prison. CEO Eric Shields got 5 1/2 to 16 years.

Hand and Shields were convicted in July of racketeering and other charges. Twenty-five other people also were convicted or pleaded guilty in the scam, which ultimately involved pocketing money that banks loaned people to buy real estate.

Shields' lawyer says Shields denies knowing anything about the scam and plans to appeal. A voice mailbox for Hand's lawyer isn't accepting messages.

[Associated Press]

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