Former Hudson County Sheriff’s Officer Admits Role in Conspiracy to Make False Statements in Connection with Fraudulent Short Sale

NEWARK, N.J. – A former Hudson County Sheriff’s Officer admitted conspiring to make false statements to a bank in connection with an application to discharge a mortgage through a fraudulent short sale, U.S. Attorney Philip R. Sellinger announced today.

Osbado Hernandez, 54, of Avenel, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on May 22, 2023, to an information charging him with one count of conspiracy to make false statements in connection with the release of a loan.

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

From September 2015 to Dec. 30, 2015, in order to induce a bank to discharge the mortgage he owed on his house in Keansburg, New Jersey, Hernandez agreed with others to make false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he did not intend to stay in the house for more than 90 days following the short sale. As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.

The false statements conspiracy charge is punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. Sentencing is scheduled for Oct. 4, 2023.

U.S. Attorney Sellinger credited special agents with the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and special agents with IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to the guilty plea. 

The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit.