Judge Arthur Spatt
Quinto, Shaw Elite LLC (Elite), Shaw Operations LLC (Operations) and SPM Agency Ltd. defaulted in mortgage broker Fairfield Financial Mortgage Group’s suit charging them, codefendants Moberg and Tarasco, and others with RICO violations stemming from a fraudulent scheme diverting brokerage business from Shaw Mortgage Group to Elite and Operationsowned by Lucawhich were never licensed as mortgage brokers (Residential Loan Scheme or RLS). Quinto, Elite, Operations and SPM defaulted. The court referred the matter to a magistrate judge to recommend whether default should be granted and damages awarded. In light of Fairfield’s letter notifying the magistrate judge that damages against all defendants may be interrelated, district court vacated referral. Finding that Fairfield established its RICO claims, the court entered default judgment against Quinto, Elite, Operations and SPM. In furtherance of the RLS, Luca, Quinto, Giacone, Moberg, Elite and Operations formed an enterprise affecting interstate commerce by doing business with lenders in interstate commerce. Further, Quinto performed predicate acts of racketeering including mail fraud, money laundering and monetary transactions in criminally derived property.
