Home News N.J. developer, attorney admit orchestrating big money mortgage fraud scheme

N.J. developer, attorney admit orchestrating big money mortgage fraud scheme

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New Jersey real estate developers and lawyers admitted Friday they were helping organize a mortgage fraud scheme According to federal prosecutors, this resulted in more than $3.5 million in losses.

Developer Victor Santos, aka Vitor Santos, 63, and Millington attorney Fausto Simoes, 69, worked with two others to secure more than $4 million in mortgages, according to a U.S. statement. was obtained illegally. a lawer office.

Mr. Santos recruited bogus or “straw” buyers to purchase 12 properties in Newark, and used their identities and credit to ensure that he and Mr. Simos were actually buying the properties. The firm said it was able to hide its identity from lenders.

Santos and others agreed to pay Straw purchasers at least $5,000 to secure tenants to lease the purchased property, and to pay the property, including fees associated with purchasing the property and their respective mortgage payments. disputed the purchaser of the straw by agreeing to bear the costs associated with Of the illegally obtained mortgages, officials said. The co-conspirators also submitted bogus loan applications and documents to mortgage lenders.

According to the firm, Simoes closed 10 bogus transactions and accelerated the lie by falsely reporting that straw buyers provided the cash needed to close them, when in fact he It received those funds from a dummy company controlled by Santos. and another co-conspirator. For some transactions, Simoes also failed to disclose to lenders that shell companies controlled by Santos and another co-conspirator received significant payments from the proceeds of the loans.

Shortly after the property was acquired, the co-conspirators broke their promise to pay the mortgage and held the straw purchaser accountable for the payment, federal prosecutors said. Still without money, he defaulted and his lender, Fannie Mae, and his insurance company lost more than $3.5 million.

Santos and Simoes, along with Warren’s Arsenio Santos and Union’s Raquel Casarinho, were indicted in 2017 for their role in the scheme, officials said. Arsenio Santos was a home builder and Casalinho worked as a mortgage consultant.

Victor Santos and Simoes pleaded guilty to conspiracy to commit bank fraud in Trenton federal court on Friday, with a sentencing expected in April 2023. Arsenio Santos and Casarinho previously pleaded guilty and were sentenced. was waiting for

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Contact Chris Sheldon at: [email protected].

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