2 Florida brokers plead guilty, face 20 years in prison
By PATRICK CROWLEY
4/22/2005

Fort Lauderdale's top code enforcement official has been suspended from her job for her possible role in a federal mortgage fraud investigation.

Lori Milano, community inspections director in the city's building department since 1999, was banned from the Fort Lauderdale city building and forced to turn over her office keys and city ID badge.

Federal authorities have also seized records and computers from her office, according to city officials.

Milano was suspended after federal authorities identified her as a target of their criminal investigation.

"You are being suspended because law enforcement officials have advised the city that you are the subject of an ongoing criminal investigation," City Manager George Gretsas said in a March 31 letter to Milano.

The city provided a copy of the letter and written statement to MortgageDaily.com.

Milano, who could not be reached to comment, will continue to be paid during her suspension.

"The city manager has pledged full cooperation with the federal investigation," city spokesman David Hebert said in a written statement. "The activity under investigation involves transactions that Ms. Milano allegedly engaged in prior to mid-2004."

Hebert referred further questions to the U.S. Attorney's Office in Miami, which is not commenting on the case.

The feds are probing Milano's potential link to a federal mortgage fraud investigation involving her brother, Scott Warren Johnson, and his wife, Samantha Johnson, of Parkland, Fla., in Broward County north of Miami.

Samantha Johnson is a mortgage broker.

Milano's alleged role in the fraud has not been revealed by authorities or city officials.

According to a written statement from the U.S. Attorney's office the Johnson's have pleaded guilty as part of a "wide-ranging" $3 million mortgage fraud scheme that included the indictments of six other people last year.

Samantha Johnson pleaded guilty to conspiracy to commit mail fraud, wire fraud and money laundering and faces more than 20 years in prison and a fine of up to $250,000. She and her husband also pleaded guilty to filing false tax returns, which carries a prison sentence of up to three years and a $250,000 fine.

The couple is forfeiting $500,000 and is cooperating with the investigation.

Investigators said Samantha Johnson and another defendant in the case, mortgage broker Mary Jo Bellavia-Sabag, "fraudulently deeded residential properties in Miami-Dade and Broward counties to themselves, their aliases and their...corporations."

"Fraudulent, and in some cases forged, quitclaim deeds were recorded in the public records in an effort to further the scheme," according to the U.S. attorney's office.

The Johnsons then sold the fraudulently obtained properties to "unsuspecting third parties" or used the properties as collateral to secure loans.

"Samantha Johnson and others obtained in excess of $3 million in property and funds from their victims," the U.S. Attorney's office said. "A large portion of the illegally derived income never was reported to the Internal Revenue Service."

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