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A Brooklyn developer who federal prosecutors say took condo buyers and banks for more than $18 million in an elaborate mortgage scam was indicted Wednesday on bank fraud charges.

The case against Eliyahu Ezagui, 48, who feds say preyed on his fellow Hasidic Jews in Crown Heights, stems from a Daily News investigation last year. Ezagui enticed scores of families into buying the homes but never turned over the deeds, according to the indictment and The News' probe.

"The defendant engaged in fraud to steal money from innocent homebuyers and financial institutions," said Brooklyn U.S. Attorney Benton Campbell.

Preconstruction prices ranged from $90,000 to $160,000 per unit at two locations, 770Lefferts Ave. and 613 East New York Ave., according to the indictment and The News' probe.

Ezagui told buyers, nearly all with young children, that the projects had the blessing of community religious leaders. Instead of giving buyers deeds when construction was completed, he kept them for himself, his father, his mother, his wife and two business associates.

Then, Ezagui took out more than $18 million in mortgages on apartments already purchased and occupied by the buyers and their families, according to the indictment. He pocketed the money, paid the mortgages for a time, then stopped and fled to Israel after The News broke the story, according to authorities.

http://www.nydailynews.com/ny_local/brooklyn/2009/04/02/2009-04-02_brooklyn_developer_eliyahu_ezagui_indict.html