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Mortgage loan officer Chris Gallo pleads guilty in federal fraud case
Gallo is scheduled to be sentenced Dec. 3 and the DOJ agreed to dismiss additional related charges if he complies with his plea agreement terms.
Chris Gallo, a former mortgage loan officer, has pleaded guilty to conspiracy to commit bank fraud in U.S. District Court in New Jersey, according to court filings reviewed by HousingWire.
Prosecutors allege that from 2018 through late 2023, Gallo and his former assistant, Mehmet A. Elmas, falsified loan documents to deceive mortgage lenders. The allegations include misrepresenting borrowers’ intent to occupy properties as primary residences so the loans could qualify for lower interest rates.
The DOJ said Gallo and Elmas submitted applications that claimed primary residency while prosecutors allege the homes were intended as rentals or investment properties. Gallo entered the guilty plea after withdrawing an earlier not guilty plea, and he remains free on bail.
Under a plea agreement, if Gallo complies with the terms, prosecutors agreed not to bring additional criminal charges related to the mortgage lender deception conspiracy, described as running roughly from 2022 through August 2023. Sentencing is set for Dec. 3, and Elmas has a plea hearing scheduled for Aug. 20, with prosecutors also agreeing to move to dismiss remaining counts at sentencing.