Crime & Safety

Leetsdale Woman Sentenced to Prison for Mortgage Fraud Scheme

Deborah Kitay, 53, receives 18 months in prison and three years of supervised release.

A woman was sentenced in federal court to 18 months in prison and three years of supervised release for failing to file her income tax returns and wire fraud conspiracy, according to the U.S. Attorney’s office in Pittsburgh.  

Deborah Kitay, 53, of 10 Valley Lane, appeared before U.S. District Judge Joy Flowers Conti Wednesday for sentencing on her convictions.

According to information presented to the court, Kitay participated in a mortgage fraud conspiracy in which she and others submitted false loan applications to lending institutions that overstated the borrowers' income and assets, among other misrepresentations.

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In addition, court officials said fake appraisals were submitted to the lending institutions as well as fraudulent settlement statements that falsely represented how the proceeds of the loan were to be distributed.

Kitay used the money from the fraud scheme to support her lifestyle and others involved in the conspiracy, but failed to file income tax returns reporting her illegally obtained earnings as income, according to court officials.

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Among the properties involved were expensive residences in  and Fox Chapel, including the home where Kitay lived at 101 Oak Lane in Sewickley during the course of the conspiracy.

Investigations by the Mortgage Fraud Task Force, composed of federal, state and local law enforcement agencies and others involved in the mortgage industry, led to Kitay’s prosecution.


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