Homeowners Facing Foreclosure Among Those Targeted In NJ Straw Buyer Mortgage Fraud Scam

From the Office of the U.S. Attorney (Camden, New Jersey):

• A New Jersey man admitted [] to conspiring to participate in a scheme which caused lenders to release more than $40.8 million based on fraudulent mortgage loan applications and conspiring to launder the proceeds of the fraud, U.S. Attorney Paul J. Fishman announced.



• Charles Harvath, 33, of Lodi, N.J., pleaded guilty to an Information charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering. He entered his guilty plea before U.S. District Judge Joseph E. Irenas in Camden federal court.

According to documents filed in this case and statements made during Harvath’s guilty plea proceeding, financially distressed homeowners facing foreclosure were among those targeted by Harvath and other members of the conspiracy, and involved the recruitment of straw buyers who had good credit scores, but lacked the financial resources to qualify for mortgage loans to purchase their properties.

For the U.S. Attorney press release, see New Jersey Man Admits To $40.8 Million Mortgage Fraud Scheme.