Glen Rock NJ Man Pleads Guilty to Committing Wire Fraud, Bilking Investors Out of $3.4 Million
A Glen Rock NJ man recently pleaded guilty to participating in a real estate investment scam.
According to federal prosecutors, the 49-year-old suspect got financing for fake real estate projects by posing as a real estate developer, broker, and investor.
The suspect was allegedly joined in the fraudulent activity by a 52-year-old suspect who was also a disbarred lawyer.
The suspects allegedly defrauded 15 people out of $3.4 million. The bogus real estate projects included a pizzeria in the Bahamas, an Atlantic City casino, and a shopping center in Matawan, NJ.
After obtaining the investment money from the victims, the suspects reportedly used the funds to cover their personal expenses, as well as their gambling losses.
Authorities conducted an investigation and eventually obtained enough proof to place the suspects under arrest and charge them with fraud.
Both suspects were indicted in August 2014.
According to the U.S. Attorney’s Office, the first suspect later admitted to his involvement in the real estate scam and reached a plea agreement.
The suspect recently appeared in federal court in Newark NJ, where he formally pleaded guilty to one count of conspiracy to commit wire fraud.
In exchange for the suspect pleading guilty to the single count of wire fraud, U.S. prosecutors agreed to drop five other wire fraud charges against him.
If the suspect receives the maximum sentence in the case, he could face up to 20 years in federal prison. The suspect will return to U.S. District Court in Newark in January 2016 so that he can be sentenced.
Authorities said that the wire fraud charges against the other suspect are still pending.
For additional information about this case, go to the NJ.com article entitled “N.J. Man Cops to Role in $3.4M Real Estate Investment Scam.”