New Jersey Woman Sentenced In Foreclosure Scam

admin —  April 24, 2009 — 3 Comments

Lizette Morice, 42, Ewing Township, New Jersey, has been sentenced to 10 years in prison for running a fraudulent investment scheme involving fictitious foreclosures, announced United States Attorney Laurie Magid. Morice pleaded guilty in July 2008 to seven counts of mail fraud. Between April 2006 and July 2007, Morice ran a company known as Gaddel Enterprises in Langhorne and Morrisville, Pennsylvania. She solicited investments in the company claiming that she was obtaining tax-foreclosed properties which she was reselling at a profit, promising clients a substantial return on their investment. No real estate transactions were ever conducted by Gaddel. To perpetuate the scheme, Morice paid early investors with other investors’ money.

The crisis in the housing market made it easier for this defendant to sell her scheme to the victims,” said Magid. “This ten year jail sentence will sound a warning bell to investment scam artists who steal other people’s money.

In addition to the prison sentence, United States District Judge Berle M. Schiller ordered Morice to pay restitution in the amount of $7,259,950, and to complete three years supervised release at the conclusion of her prison sentence.

The case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Frank R. Costello, Jr.


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3 responses to New Jersey Woman Sentenced In Foreclosure Scam

  1. This is mortgage foreclosure fraud part II for the same subject proerty. Another LIS PENDENES for foreclosure was filed in Warren County, NJ on January 12, 2010, docket # F-03836-10. It was not recorded in Trenton until February 9, 2010. It was finally recorded in Warren County on March 1, 2010. there is a fraulent final judgment for foreclosure , dated May 30, 2008 on the same subject property located at 132 Morris Street, Phillipsburg, NJ.

    In the first count of the complaint on docket # F-03836-10, it states that the amount owed to Bank of America is $240K when in fact they owe $373K according to the bankruptcy filing of July 18, 2008. In the first count of the complaint it states that the debtors have been in default since July 19, 2007. They are still not in default, and that does not show in the bankruptcy filing. Since when does it take Bank of America almost three years to file for foreclosure? It states in the second count of the complant that the debtors have deprived Bank of America possession of the subject property at all times. The subject property was to be surrendered in September 2008 as per the bankruptcy. that was never done. As of date the second fraudulent LIS PENDENES for foreclosure is at a stand still. Only the complaint has been filed and the debtors are in default, but then the home was to be surrendered. This is not only mortgage foreclosure fraud but bankruptcy fraud to cover the mortgage foreclosure fraud. US Trustee, Diana G. Adams is so very complicit in the bankruptcy fraud to cover the ass of Trustee Guy Van Baalen and Attorney for Bank of America Frank Martone in the mortgage foreclosure fraud. We’ll see how long it takes for these people to be indicted. It’s been almost three years now since this all started and I’ve been maliciously prosecuted for being the whistle blower.

  2. Why is it that these people are still getting away with mortgage foreclosure fraud and bankruptcy fraud? No one wants to touch it because there are lawyers, judges, sheriff’s department, etc. complicit.

  3. Mike and Joann Kudrewicz of Phillipsburg, NJ almost got away with stealing $359K from the Bank of America in a mortgage foreclosure fraud scheme. I have all the documentation that is recorded and documented in Warren County and Trenton, NJ. The sheriff’s dept. in Warren County was complicit, as are judges, lawyers, real estate agent, town officials, Somerset County where the foreclosure are processed and finalized. Let’s get this out in the open. It’s now bankruptcy fraud in NY State.

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