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NY Lawyer in Mortgage Securities Scam Faces 25 Years

ORLANDO-James P. Conroy, convicted of three felonies in the alleged $214 million swindle of 2,203 global investors by the defunct, Orlando-based Evergreen Security Ltd. from 1990 to 2000, is scheduled to be sentenced July 15 in New York State Supreme Court.

By Alex Finkelstein | Updated on June 03, 2003

ORLANDO-New York lawyer James P. Conroy, part of a team of 24 professionals associated with the former, Orlando-based Evergreen Security Ltd. in an alleged 10-year, $214 million, mortgage securities scam involving 2,203 global investors, faces up to 25 years of prison time when he comes up for sentencing July 15 in New York State Supreme Court.

If Conroy receives the maximum sentence, it would be the stiffest penalty yet in the 28-month-old ongoing investigation, according to U.S. Bankruptcy Court records in Orlando. Six managers and equity partners in Evergreen have received lighter sentences in lieu of returning a small portion of the alleged stolen funds.

According to court records, Conroy is alleged to have directly advised Evergreen owner William J. Zylka of New Vernon, NJ in the scheme. Investors believed they were putting their money into U.S. government mortgage-backed securities that would return an annual interest rate of 9% to 12%, documents filed by court-appointed trustee R. W. “Bill” Cuthill allege.

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