Two Long Island Couples Arrested For Allegedly Short Selling Property to Catholic School

NEW YORK (CBSNewYork) -- Two Long Island couples have been arrested on bank fraud and conspiracy charges after allegedly short selling a foreclosure property to a Hempstead Catholic school, WCBS 880's Irene Cornell reported.

Listen to 2 Long Island Couples Arrested For Allegedly Short Selling Property to Catholic School

United States Attorney Loretta Lynch said the four defendants, including a real estate attorney and the head of a real estate firm, took advantage of Sacred Heart Academy. Cornell reported the four tried to cash in on the school's expansion plans to add an athletics field by flipping a property that was under foreclosure proceedings by Bank of America.

The defendants reportedly sold the property to the school for $1 million, meanwhile cheating the bank out of $500,000, Cornell reported.

Lynch said the four created a "web of lies," creating false documents and committing fraud, "pure and simple."

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