NJ Man Facing Felonies In Equity Stripping, Straw Buyer Scam

The Jersey Journal reports that Kamal Ghobryl, 41 of Bayonne, New Jersey, has been charged with two counts of theft by deception in excess of $75,000, as a result of his transferring the ownership of a friend's home to his company and then selling it to a straw buyer without her knowledge. While the charges are a state crime, he was arrested by detectives from both the Hudson County, New Jersey Prosecutor's Office and FBI agents, which may mean that Federal charges could also be forthcoming (ie. mail fraud, wire fraud, money laundering, false statement on loan application, conspiracy, etc.).

While the incident does not appear to have occurred in the context of a foreclosure rescue context, the suspect's alleged conduct essentially mirrors that of an equity stripping, foreclosure rescue transaction.

Because of the victim's limited capacity to read and write English, Ghobryl volunteered to help the victim sell her house. He had the victim sign paperwork that transferred her property to his company, K&G Financial, without explaining what she was signing, followed by obtaining a $270,000 mortgage in the name of the straw buyer using phony financial and employment documents, according to authorities. Ghobryl allegedly pocketed the money, made no payments on the mortgage, and allowed the property to go into foreclosure. The victim, who was still living in the house when all this went on, first learned that the property had been sold when she received a water bill in the name of the straw buyer, who has not been charged with committing any crimes (yet). For more, see Charge he fleeced friend in $270G real estate scam.