New Jersey Prosecutors Charge Five In Mortgage Scam; Sixth Participant Cops Plea, Agrees To Sing Against Others

In Monmouth County, New Jersey, the Asbury Park Press reports:

• Five people have been charged Thursday with conspiracy to defraud mortgage lenders of more than $4 million, authorities said. [...] The investigation uncovered a conspiracy to file fraudulent mortgage applications to obtain financing for seven different value-inflated properties — six in Monmouth County and one in Florida, authorities said. Excessive fees also were charged. Funds from the closings were then funneled into various shell corporations. Lenders have already foreclosed on six of the seven properties, the release said.

The arrests came after a sixth "fish" authorities said was also involved, John Deickmann, 27, of Red Bank, "won the race to the prosecutor's office" and avoided "getting fried" by copping a guilty plea on Monday in connection with the alleged scheme. In exchange for an agreement to testify against the other five "fish", Deickmann will reportedly face no jail time and be sentenced only to probation. He currently is free on his own recognizance.

The five who are facing charges are: John Pereless (39, $750K bail), Kevin Deickmann (34, $500K bail), Susan Pereless, also known as Susan Coonan (65, $500K bail), Ramon Iglesia (24, $100K bail), and Erza Lustado (34, $100K bail).

For more, see Five charged in mortgage fraud (Properties in Monmouth County and Florida) (no longer available online).

See also, Monmouth County Prosecutor press release - Five Arrested in Multi-Million Dollar Mortgage Fraud.