Former Atlantic County Prosecutor’s Office Detective Admits Mortgage Fraud Conspiracy
CAMDEN, N.J. – An Atlantic County, New Jersey, woman today admitted her role in a more than $200,000 mortgage fraud conspiracy involving a property she purchased in Mays Landing, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Betsy Borges, 38, of Mays Landing, pleaded guilty before Senior U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of conspiracy to commit bank fraud.
Borges was originally charged by complaint in May 2017 with Iraida Fuentes, 35, of Pleasantville, New Jersey.
According to documents filed in this case and statements made in court:
In December 2002, Borges purchased 4957 Cardigan Court in Mays Landing. Despite failing to make mortgage payments to Wachovia and its successor, Wells Fargo, Borges collected rental income from tenants living in the property and concealed that income from the banks. Borges also falsely represented to Wells Fargo, on multiple occasions, that she could not make the mortgage payments for the property.
Borges subsequently arranged with Wells Fargo for Fuentez to purchase the property through a short sale. Not only did Borges and Fuentez conceal their familial relationship from Wells Fargo, they also concealed the fact that Borges and another conspirator provided Fuentez the funds to purchase the property.
On Sept. 20, 2012, Fuentez purchased the property at a price well below its actual value. On Nov. 22, 2016, B&B Properties – a company owned in part by Borges – purchased the property from Fuentez for $25,000. On Feb. 3, 2017, Borges then individually purchased the property from B&B Properties for a dollar.
The bank fraud conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. As part of her plea agreement, Borges must forfeit $206,450 in criminal proceeds from the scheme. Sentencing is scheduled for Feb. 23, 2018.
Fuentes previously pleaded guilty on Nov. 6, 2017 to making a false declaration in the grand jury in relation to this matter and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, for their assistance.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Louis M. Barbone Esq., Atlantic City, New Jersey.