New jersey man sentenced to prison for role in $40.8 million mortgage fraud scheme

FOR IMMEDIATE RELEASE

June 5, 2012

 

CAMDEN, N.J. – John Siuszko, 56, of Wharton, N.J., was sentenced today to 18 months in prison for conspiring in a scheme that caused lenders to release more than $40.8 million based on fraudulent mortgage loan applications, U.S. Attorney Paul J. Fishman announced.

Siuszko previously pleaded guilty to an Information charging him with conspiracy to commit wire fraud. He entered his guilty plea before U.S. District Judge Joseph E. Irenas, who also imposed the sentence today in Camden federal court.

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

Siuszko served as a straw buyer for his co-conspirators in order to purchase an oceanfront condominium overbuilt by a financially distressed developer in Wildwood Crest, N.J. Siuszko had a good credit score but lacked the financial resources to qualify for a mortgage loan to purchase the property. His co-conspirators caused a fraudulent mortgage loan application and supporting documents to be submitted to a mortgage lender in Siuszko’s name, attributing to Siuszko inflated income and assets in order to induce the mortgage lender to approve the loan. Once the loan was approved and the mortgage lender sent the loan proceeds in connection with the real estate closing on the property, Siuszko’s co-conspirators took a portion of the proceeds from the $979,664.21 fraudulent mortgage loan and paid Siuszko $40,000 for his role.

In addition to the prison term, Judge Irenas sentenced Siuszko to serve two years of supervised release and ordered him to forfeit $40,000 and pay a $5,000 fine.

Siuszko’s co-conspirator Charles Harvath, 34, of Lodi, N.J., previously pleaded guilty to an Information charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering. He is currently scheduled to be sentenced Dec. 5, 2012.

U.S. Attorney Fishman credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Michael B. Ward in Newark; and IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga, with the investigation.

The government is represented by Assistant U.S. Attorney R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.

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Defense counsel:
William G. Johnson Esq., Dover, N.J.

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