United States Attorney Stephen J. Murphy announced today that Safi Sobh, 34, of Dearborn, Michigan, was found guilty today of conspiring to commit bank fraud by submitting false documents in support of mortgage loan applications, and of aiding and abetting bank fraud. Co-defendant Amed Shami, 25, of Dearborn, was acquitted of the same charges.

Murphy was joined in the announcement by FBI Special Agent in Charge Andrew Arena, of the Detroit Division.

The jury deliberated for about five hours before returning the verdicts, concluding a three-week trial before United States District Patrick J. Duggan.

The evidence presented during the trial showed between July 2002 and December 2005, Safi Sobh was the leader of a conspiracy that successfully corrupted the system of checks and balances that lending institutions rely upon to determine how much money they can safely lend on a property, and whether a particular borrower is likely to repay the loan. Ohio Savings Bank, Standard Federal Bank, and several other federally insured financial institutions relied upon the false representations of the conspirators and loaned millions of dollars, most of which has not been recovered. Working out of his realty, The Success Group, Safi Sobh hand-picked and taught his co-conspirators how to commit these crimes. The eight co-conspirators who were also indicted and who pleaded guilty included corrupt loan originators, processors, appraisers, and straw buyers. Amed Shami was acquitted of being a straw buyer on two of approximately 30 properties.

Aiding and abetting bank fraud carries a maximum penalty of 30 years in custody and a $1,000,000 fine; conspiracy carries a maximum of 5 years in custody and a $250,000 fine.

Safi Sobh’s sentencing has not been scheduled.

United States Attorney Stephen J. Murphy said, “The mortgage lending process depends on the honesty of brokers, appraisers, and real estate agencies. When this process is corrupted by a team of fraudsters, as it was in this case, the result will be a federal prosecution. I salute the hard work of the FBI and the prosecutors who handled this complex fraud trial.”

The case was investigated by agents of the Federal Bureau of Investigation, and prosecuted by Assistant United States Attorneys Cynthia Oberg and Julie Beck.