Wheels of justice continue to grind from July 2012 as the federal government unravels a $15-million mortgage fraud case that started in 2007. Another defendant, one of 11 involved in buying North Wildwood and Wildwood Crest condominiums with fraudulent documents using “straw buyers,” appeared in federal court Sept. 2.
According to U.S. Attorney Paul J. Fishman, Larry Fullenwider, 63, of Belleville, pleaded guilty Sept. 2 before U.S. District Judge Jerome B. Simandle to a second superseding indictment charging him with one count of conspiracy to commit wire fraud.
Using the alias “Stanley Hyde,” Fullenwider admitted purchasing four condominiums in North Wildwood, after presenting a false identification and using fake documents to support fraudulent loan applications.
Eleven defendants were charged in July 2012 with conspiracy to commit wire fraud and conspiracy to commit money laundering. Two additional defendants, Nicholas Tarsia, 65, of Totowa, and Mashon Onque, 43, of East Orange, were charged in November 2013 with conspiracy to commit wire fraud. Tarsia was also charged with one count of conspiracy to commit money laundering.
Fullenwider’s conspirators, including Timothy Ricks, 46, of East Orange, and Kinard Henson of Ventres, Ala., who both pleaded guilty before Simandle, Ricks in February 2013 and Henson in February 2014.
Court documents stated the defendants located oceanfront condominiums overbuilt by financially distressed developers and negotiated a buyout price with the sellers. They then caused the sales prices for the properties in Wildwood Crest and North Wildwood, other locations in New Jersey and in Naples, Fla. to be much higher than the buyout price to ensure large proceeds.
Other defendants helped conceal true sales prices of certain properties through inflated sales contracts and sale and finder’s fee agreements.
Fullenwider served as a “straw buyer” who purchased four North Wildwood properties at inflated rates in late January and early February 2007. Using his alias and a false Social Security number he purchased the properties.
In order to qualify for mortgage loans, Fullenwider and conspirators created false documents, such as fake W-2 forms, pay stubs, bank statements and investment statements, to make him (and other straw buyers) appear more creditworthy.
Fullenwider and other conspirators caused fraudulent mortgage loan applications in his name, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false.
Once the loans were approved and mortgage lenders sent the loan proceeds in connection with real estate closings, Fullenwider received a part of the proceeds from his conspirators after they had funds wired or checks deposited into various accounts they controlled.
Fullenwider’s conspirators also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 20, 2015.
Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS, Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen in Newark, for the investigation leading to the Sept. 2 guilty plea.
Source: capemaycountyherald
