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Deputy Mayor Charged w/Mortgage Fraud Scheme in Connection w/ Fraudulent Short Sale

Stephanie Abbott —  January 17, 2024 — Leave a comment

Nathaniel Anderson, 56, Willingboro Township, New Jersey, a town councilman and the deputy mayor of Willingboro in Burlington County, New Jersey, and his business associate Chrisone D. Anderson, 56, Sicklerville, New Jersey, were charged with conducting a scheme to discharge the deputy mayor’s mortgage obligation on his property through a fraudulent short sale.

According to documents filed in the case and statements made in court:

From March 2015 through June 2017, Nathaniel Anderson and Chrisone D. Anderson conspired and agreed with one another to orchestrate a fraudulent short sale of a property in Willingboro from Nathaniel Anderson to Chrisone D. Anderson.

As part of the conspiracy to defraud a government sponsored enterprise to discharge a mortgage obligation on Nathaniel Anderson’s property in Willingboro and to induce a mortgage lending business to issue a new mortgage on the property, Chrisone D. Anderson executed – and Nathaniel D. Anderson aided and abetted the execution of – mortgage documents containing materially false representations. These included that the short sale was an arm’s length transaction, that Chrisone D. Anderson did not have a prior business relationship with Nathaniel Anderson, that Nathaniel Anderson would not continue to occupy the property as his residence following the short sale, and that Chrisone D. Anderson would occupy the property as her primary residence.

As a result of the fraudulent short sale, the government sponsored enterprise discharged Nathaniel Anderson’s mortgage obligation and suffered a loss of over $120,000, and the victim lender issued a new mortgage on the property. During a May 2022 interview, Chrisone D. Anderson made false statements to an agent of the FBI concerning the short sale.

The charges of conspiracy to commit wire fraud affecting a financial institution, bank fraud, and making false statements on a loan application are each punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. The charges of making false statements to a federal agent are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000.

Additionally, Chrisone D. Anderson is charged with two counts of making false statements to a federal agent. Nathaniel Anderson and Chrisone D. Anderson made their initial appearances today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were released on $50,000 each unsecured bond.

U.S. Attorney Sellinger made the announcement.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Northeast Region of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton, working in conjunction with the Special Prosecutions Division in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Man Sentenced to Prison for Short Sale Fraud Scheme

Stephanie Abbott —  June 3, 2021 — Leave a comment

Steve Young Kang, aka “Steven Young Kang” and “Young Tae Kang,” 66, Ridgefield, New Jersey, was sentenced today to 18 months in prison for his role in a multi-year scheme to defraud financial institutions and others for a Short Sale Fraud Scheme.

According to documents filed in this case and statements made in court:

Kang and others fraudulently induced mortgage lenders to participate in “short sale” transactions, in which, typically, a financial institution agrees to allow a homeowner in financial distress to sell his or her home for less than the homeowner owes on the mortgage. Such transactions are called short sales because the market value of the house is less than the amount owed by the homeowner and the lender agrees to accept a payment “short” of the amount owed by the owner.

From June 2013 to January 2017, Kang, who owned and controlled two real estate brokerages, sold his own properties and recruited others to sell properties in fraudulent short sales to a co-schemer, Mehdi Kassai. The co-schemers convinced financial institutions to agree to short sales and to accept less than the properties were worth through false documents, straw buyers, and cosmetic damage to properties. Kang, as a listing broker, also prevented legitimate and higher offers from being made by artificially limiting the ability of others to bid on and buy properties. Kassai then sold the properties to third-parties at a substantial profit. Kang defrauded financial institutions and others of at least $2.7 million.

In addition to the prison term, Kang was sentenced to three years of supervised release and ordered him to forfeit $835,248 in proceeds of the scheme. Restitution will be determined at a later date.

Kang previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of bank fraud and one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.

Rahul Agarwal, Attorney for the United States in this matter, announced.

Attorney for the United States Agarwal credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, special agents of the U.S. Department of Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, with the investigation leading to today’s sentencing.

The government is represented by Special Assistant U.S. Attorneys Charlie L. Divine and Kevin V. Di Gregory of the Federal Housing Finance Agency, Office of Inspector General.

 

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