On Oct. 31, it was reported that a New Jersey woman and her parents were convicted for being involved in a mortgage fraud scheme. The 37-year-old Cherry Hill woman and her parents were accused of defrauding vulnerable individuals who were trying to save their homes from foreclosure.
The woman owned a financial service business and worked as a mortgage broker for a mortgage company while her father was a realtor. From late 2006 to late 2009, the woman and her parents reportedly told the homeowners that they could provide options to save their homes, including becoming involved in a lease buyback program. The homeowners signed documents that put the equity of the homes into escrow so that they could eventually repurchase their homes. They were told that their names would remain on the titles. However, money given by lenders was distributed to the defendants instead of being distributed to the rightful parties.
This ultimately caused the loans to go into default. It was estimated that the fraud scheme caused nearly $4 million in damages to the mortgage lenders. All three individuals involved were found guilty of wire fraud, bank fraud and conspiracy to commit wire and bank fraud. There were scheduled to be sentenced in January, 2016.
When individuals are accused of fraud, they may face very serious consequences if convicted that could include a jail sentence, fines and a loss of licenses and certifications. A criminal law attorney may create a strong defense if there is evidence that the accused person was not intending to defraud anyone or if no crime was actually committed. Otherwise, the attorney may negotiate a plea deal that reduces the potential penalties that may be imposed.
Source: Haddonfield-Haddon Township, "South Jersey Woman, Parents Guilty Of Multi-Million Dollar Fraud Scheme", Kara Seymour, Oct. 31, 2015