Wednesday, April 12, 2006

Dentist Indicted in New Jersey Mortgage Scam

From the Mortgage Fraud Blog:

Indictment of Dentist and Former Employee in New Jersey Mortgage Fraud Scheme

A Staten Island, New York, dentist and a former employee were indicted in New Jersey federal court on conspiracy, wire fraud and money laundering charges for operating a scheme to fraudulently obtain $1.36 million in mortgages and spending the proceeds on luxury items including the purchase of a 46-foot yacht, a North Carolina residence and a GMC Yukon Denali.
...
The Indictment describes a scheme in which the defendants used fraudulent documents, made false statements, established fictitious companies and opened back accounts in the companies’ names to fraudulently obtain mortgages secured by a property at 412-414 Commerce Lane, West Berlin, New Jersey. (the “Commerce Lane property”).
...
The defendants are each charged in Count One of the Indictment, which alleges a conspiracy to commit wire fraud, which carries a statutory maximum penalty of five years in prison and a fine of $250,000 or twice the aggregate loss to the victims or gain to the defendants. Counts Two through Four charge both defendants with wire fraud, which carries a statutory maximum penalty of 30 years in prison and a fine of $1 million. Count five charges the defendants with conspiracy to commit money laundering, which carries a statutory maximum penalty of 10 years in prison and a fine of $250,000. Counts Six through 23 charge both defendants with money laundering, which carries a statutory maximum penalty of 10 years in prison and a fine of $250,000.

Caveat Emptor!
Grim

5 Comments:

Anonymous Anonymous said...

More signs that the RE business is laden with fraud and corruption.

No different than any other mania/bubble in history.

4/13/2006 08:22:00 AM  
Blogger bairen said...

Isn't it criminal enough to charge $500 for a cleaning and 1 filling?

4/13/2006 09:14:00 AM  
Anonymous Anonymous said...

Price shop. No one forcing you to pay.
Same with housing. People choose to pay, but in most cases they can't afford it using a tradional loan. using some risky gimmicky spec loan.
Deserve the consequences

4/13/2006 09:20:00 AM  
Anonymous Anonymous said...

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4/24/2006 06:18:00 AM  
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5/18/2006 05:26:00 PM  

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