Thursday, October 05, 2006

Former Employee of N.J. Affordable Homes Pleads Guilty

John Kurzel was charged by information and pled guilty in a Newark, New Jersey federal court to one count of conspiracy to commit wire fraud in connection with an alleged New Jersey mortgage fraud scheme involving inner-city properties.

The information alleges that Kurzel was employed by N.J. Affordable Homes Corp (NJ) as a mortgage loan processor and was responsible for preparing loan applications in the names on nominee buyers of property being sold by NJ.  The information identifies WP, the president of NJ, LS an account manager working directly for WP, and KA a loan processor for NJ, as co-conspirators though they are not named as defendants

According to the information, from August 2003 to September 2005, NJ would acquire properties, frequently located in inner-city areas such as Irvington and Newark, New Jersey.  WP and others would solicit individual investors to purchase the properties in name only � as part of a purported investment program described by WP as ”Our Money, Your Credit” wherein, the investors allowed WP to apply for mortgage loans in their names to finance the purchase of properties for NJ.  WP would promise the buyers that

(1) NJ would pay all carrying costs associated with the properties � including the loan payments;

(2) NJ would renovate the properties at no cost to the buyers and then sell the improved properties on their behalf;

(3) the buyers would receive 50% of the profits from the sale of the renovated properties. 

Kurzel and KA would prepare false loan applications and supporting documents in the names of the buyers and submitted them to lenders.  The false documents included:

(1) fictitious account statements reflecting that the buyers had funds on deposit with NJ when they did not,

(2) inflated income and false representations regarding employment status and employers,

(3) sales contracts that misidentified the sellers and concealed NJ’s ownership interest,

(4) inflated appraisals,

(5) bogus leases, and

(6) false statements regarding down payments.

Properties identified in the information include:

284-286 S. 8th Street, Newark, New Jersey
65 Eppirt Street, East Orange, New Jersey
447 Line Road, Aberdeen, New Jersey

According to the information, N.J. Affordable Homes Corp. had offices in Woodbridge, Hopelawn and Perth Amboy, New Jersey and also did business as: 

Purely Profit Plus LLC
NJ Affordability Homes Corp.
New York Affordable Project Management Corp.
Speedy Realty, Inc.
Discount Homes R. Us, Inc.
H&W Properties, Inc.
NJ Homes of New Jersey, Inc.
Quality Homes Are Us, LLC
United Funding Capital

mortgage fraud