Cabral Simpson, 43, Belleville, New Jersey, was arraigned today on charges that he engaged in a conspiracy to commit mortgage fraud that resulted in potential losses in excess of $1 million.
According to documents filed in this case and statements made in court:
Simpson, a real estate investor, and his conspirators engaged in mortgage fraud by creating fake bank statements and fake employee verification records for buyers of properties and transferring money into the buyers’ bank accounts for payment of the deposit for a property. Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers. They induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in potential losses.
The conspiracy and wire fraud counts with which Simpson is charged each carry a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
Simpson appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court. He is charged by indictment with one count of conspiracy to commit wire fraud and two counts of wire fraud.
U.S. Attorney Craig Carpenito made the announcement.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.