This week, it was announced that a man from Jackson, New Jersey had been sentenced to 18 months in prison for his involvement in a large-scale mortgage fraud scheme. The scheme used phony documents and straw buyers to obtain more than $6 million in loans. Joseph DiValli previously pleaded guilty to a superseding information charging him with one count of conspiracy to commit wire fraud, one count of wire fraud and one count of tax evasion.
Documents filed in the case and statements made in court show that from March 2011 through November 2012, the defendant and other conspirators agreed to fraudulently acquire mortgage loans for properties in North Jersey. After finding straw buyers to buy the properties, the conspirators submitted false and fraudulent loan applications and supporting documents so the straw buyers would be able to qualify for the loans.
The group also used another conspirator, who worked at a bank, to create misleading certifications, which showed that certain bank accounts held more funds than they really did. DiValli and the others submitted false appraisal reports, backdated deeds and used unlicensed titled agents to close transactions and disburse mortgage proceedings. Further details have been made available here.