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Woman accused of mortgage fraud seeks handwriting expert

Contributed photo Debbie Sferrazza.

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By Dave Greber, Staff Writer 10:23 AM Monday, February 15, 2010

CINCINNATI — The lead defendant of a local family accused in a mortgage fraud scheme has been granted additional time to prepare for trial so she could secure a handwriting expert, court records show.

Debbie Sferrazza, 45, of West Chester Twp., five members of her family and two employees are accused of operating a mortgage scheme from 2004 to 2009 that amassed nearly $3 million, federal court records show. A 52-page indictment was handed down Jan. 13. Each member of the family was released on their own recognizance following a court hearing Jan. 14.

A motion filed Feb. 4 in U.S. District Court in Cincinnati showed Debbie Sferrazza intends to seek the services of a handwriting expert in her defense, according to briefs filed by her attorney Robert Trainor, of Kenton County, Ky. Trainor could not be reached for comment.

As a result, the right to speedy trial has been waived, and each of the seven defendants have until May 3 to file any additional motions. Final replies to those motions are due May 26, according to federal court documents.

“There are seven defendants in this case, and the documentary evidence is significant,” U.S. District Court Chief Judge Susan J. Dlott wrote in the Feb. 4 motion. “At least one Defendant plans to retain a handwriting expert to review the evidence. Based on the number of defendants and the complexity of the case, Defense counsel will need more than the typical amount of time to prepare for trial.”

In addition to Debbie Sferrazza, her husband, Salvatore, 70, also of West Chester; James Ashurst, 26, and his wife Heather, 26, also of West Chester; Keiron Ashurst, 44, of Fairfield; Whitney Bonapfel, 21, of Cincinnati, and; Tabatha Sturgill, 34, of Hamilton, are all facing dozens of federal charges.

Keiron Ashurst is the brother of Debbie Sferrazza; Bonapfel is the daughter of Debbie Sferrazza; James Ashurst is the son of Debbie Sferrazza, according to the U.S. Attorneys Office. Sturgill is an employee of Sferrazza’s.

The indictment accuses the seven of operating a mortgage fraud conspiracy that involved family members and mortgage brokerage businesses from at least 2004 to 2009, the U.S. Attorneys Office has said. The charges focus on 14 real estate transactions involving eight residential properties during that time period that totalled nearly $3 million. The indictment states the family likely laundered close to $900,000 during the five years in question.

The indictment alleges the family used fake documents — like verifications of employment, fake pay stubs, fake Social Security benefit letters and fake W-2 forms — to obtain mortgages or refinances for themselves, other family members and other customers. The fake forms “showed a pattern of inflating the borrower’s income,” according to the U.S. Attorney’s Office.

Instead of using the money they were loaned for home purchases or refinances, they would pocket the money, U.S. Attorney’s Office officials have said.

The scheme also included the sale of properties at inflated values in order to obtain additional funds from mortgage lenders, according to court documents.

Each count is punishable by up to 20 years in prison, except for filing false income tax returns, which is punishable by up to three years in prison.

The indictment shows Debbie Sferrazza, who worked in the mortgage lending and real estate industry, managed several different companies, including Alpha Mortgage Lending, LLC; Alpha Mortgage Exchange, LLC; S.D.S. Processing LLC (also known as S.D.S. Inc.); and Target Loan Packaging (also known as Target Loan Processing).

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