Key facts
- Christopher Gallo pleaded guilty to conspiracy to commit bank fraud.
- The plea was entered in the U.S. District Court for the District of New Jersey.
- Gallo and his former assistant, Mehmet A. Elmas, were charged by the DOJ in April 2024.
- Prosecutors allege the defendants falsified loan documents to deceive mortgage lenders.
- The scheme involved misrepresenting property usage to obtain lower interest rates.
Christopher Gallo, once a leading mortgage loan officer, has pleaded guilty to conspiracy to commit bank fraud in federal court in New Jersey. Gallo withdrew his earlier not guilty plea on Wednesday in the U.S. District Court for the District of New Jersey. He remains free on bail and is scheduled for sentencing on December 3.
His former assistant, Mehmet A. Elmas, has a plea hearing scheduled for August 20. The U.S. Department of Justice initially charged both men in April 2024, alleging they falsified loan documents between 2018 and late 2023 to deceive mortgage lenders. They worked at NJ Lenders Corp. before joining CrossCountry Mortgage in late 2023.
Prosecutors contend that Gallo and Elmas routinely misled lenders about borrowers' intentions for properties to secure lower interest rates, often falsely stating that homes would be primary residences when they were intended for rental or investment purposes. Under a plea agreement, the government has agreed not to pursue additional charges related to the conspiracy if Gallo adheres to its terms, and prosecutors will seek to dismiss the remaining counts at sentencing.
The conspiracy to commit bank fraud charge carries a maximum sentence of 30 years in prison and a fine of up to $1 million or twice the gain or loss from the offense. Gallo has agreed to mandatory restitution for victims' losses, though the final amount will be determined by the judge. The plea deal also includes an appeal waiver applicable if the court imposes a prison term of 18 months or less.