SLIDESHOW: Photos of the defendants
The former property owners are now "facing various levels of eviction" and possible lawsuits to recover their homes, DiFiore said at a news conference. Besides the four homeowners, two banks were victimized, she said.
The four lawyers, along with four other people, were indicted Tuesday, each on charges of grand larceny, fraud and conspiracy.
They pleaded not guilty.
The indicted lawyers were identified as Mildred Didio, 44, of Manhattan; David Reback, 67, of Rye Brook; Eileen Potash, 52, of Queens; and Frank Corigliano, 44, of Newtown, Conn. Also named in the indictment were Doreen Swenson, 60, and Herbert Hall, 61, both of Tarrytown; Amerigo DiPietro, 59, of Brewster; and Wilma Shkreli, 32, of Westwood, N.J.
DiPietro's attorney, William Aronwald, and Reback's lawyer, Kenneth Gribetz, denied their clients committed crimes. Other defense lawyers did not immediately return telephone calls.
If convicted, they each could be sentenced to five to 15 years in prison.
Beginning in 2004, the conspirators would scout notices of foreclosure and public auctions, then approach beleaguered owners and propose a solution to keep them in their homes, said Assistant District Attorney Brian Fitzgerald.
They would then bring in the lawyers, who would supervise the transfer of the properties while assuring the owners they could get their homes back when they were on firmer financial footing, DiFiore said.
"That was the whole basis of the con," she said.
According to the FBI, mortgage fraud losses nationwide were up 83 percent in 2008 with the economic downturn, spikes in foreclosures and diminishing credit.
DiFiore said she has established a unit of prosecutors and investigators to pursue real estate frauds.
"These crimes have the potential to destabilize entire neighborhoods," she said.
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