WILDWOOD CREST — In a continuing investigation into mortgage fraud involving Cape May County resort properties, U.S. Attorney for New Jersey Paul Fishman on Wed., July 27 announced that a second man admitted involvement in a $40.8-million mortgage fraud conspiracy.
John Siuszko, 55, of Wharton pleaded guilty to an information charging him with conspiracy to commit wire fraud. His plea was entered before U.S. District Judge Joseph E. Irenas in Camden federal court.
According to documents and statements made in court, Siuszko served as “straw buyer” for his co-conspirators to buy a Wildwood Crest oceanfront condominium overbuilt by a “financially distressed developer.”
Siuszko, while possessing a good credit rating, lacked financial resources that would have qualified him for a mortgage loan to buy 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 his inflated income and assets in order to induce the lender to approve the loan.
Once approved, the lender sent money in connection with the real estate closing on the property; Siuszko’s co-conspirators took a part of the proceeds from the $979,664 fraudulent loan, and paid Siuszko $40,000 for his role.
Lodi resident Charles Harvath, 33, earlier pleaded guilty (July 19) to an information that charged him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering.
He and co-conspirators found distressed properties, recruited straw buyers, and created false documents in order to inflate the straw buyer’s qualifications as part of the scheme.
Harvath’s sentencing is scheduled on Oct. 25.
Wire fraud conspiracy charges to which Siuszko pleaded guilty carry a maximum potential penalty of 30 years in prison and $1-million fine.
Additionally, Siuszko agreed to forfeit $40,000, the amount of proceeds of the offense. He also agreed to forfeit a 2006 Kawasaki motorcycle purchased with the proceeds. His sentencing is set for Nov. 4.
Fishman credited special FBI agents from the Atlantic City Resident Agency, under direction of Special Agent in Charge Michael B. Ward; and IRS-Criminal Investigation in Mays Landing, under the direction of Special Agent in Charge Victor W. Lessoff with the ongoing investigation that led to the guilty plea.
Assistant U.S. Attorney R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden represented the government in the case.
William G. Johnson of Dover is Siuszko’s defense attorney.
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