A Milford solo who was once a rising star in Milford politics was ordered to serve 24 months in prison for her role in a mortgage scheme.
Genevieve Salvatore, once a successful real estate lawyer, has been ordered to report to prison July 11.
As part of her sentence, she was also ordered to serve three years of supervised release and to forfeit $19,245.54.
In November, she pleaded guilty to taking part in a multi-million dollar mortgage fraud scheme. According to court records, she and three other lawyers took part in a plan to defraud lenders by falsifying mortgage applications and deed records. Officials said the scheme left rental properties throughout New Haven abandoned, and resulted in losses of more than $10 million to the lenders.
In the indictments of Salvatore, and three New Haven attorneys — Lawrence Dressler, Jeffrey Weisman, and Bradford Rieger — it was revealed that the group worked out deals with sellers of rental properties, who agreed to accept lower sale prices than what was listed on the sales contracts.
The group also enlisted straw buyers, including a group of New York City corrections officers, to apply for mortgages and obtain loans that were much higher than what the sellers were paid. To get the loans, the group submitted forms that included inflated values, falsified monthly income and fictitious leases.
The lawyers and other participants were then paid from the proceeds, prosecutors said.
The first of the four lawyers to be prosecuted, Rieger, was sentenced to two years in prison for his handling of 19 transactions. He was also disbarred for 12 years. Dressler and Wiesman have also pleaded to related charges and await sentencing.
Salvatore was also a local activist who championed food allergy awareness, prompted by her son’s peanut allergies. And as chair of the city’s economic development commission, she launched a recycling initiative and supported the immediate renovation at Jonathan Law High School. In 2009, she got the Democratic mayoral nomination. Dannel Malloy, before he became governor, attended a fundraiser for her. She was endorsed by the New Haven Register, whose editorial page called her an “enthusiastic and quick learner” and a “fresh alternative” to the Republican incumbent.
She lost that race.