BELLEVILLE –
A 63-year-old Belleville man faces up to 30 years in prison after pleading guilty to his role in a $15 million mortgage fraud scheme, U.S. Attorney Paul J. Fishman announced last week.
Appearing Sept. 2 in federal court in Camden, defendant Larry Fullenwider admitted conspiring to defraud financial institutions as part of the scheme that made illegal profits on overbuilt condominiums at the Jersey Shore and in Florida, Fishman said.
Fullenwider, charged with one count of conspiracy to commit wire fraud, admitted purchasing four condos in North Wildwood after presenting a false identification and using fake documents to support fraudulent loan applications, Fishman said. He was among 13 persons arrested in the case.
According to Fishman’s office, the scheme masterminds located oceanfront condos built by financially distressed developers and negotiated a buyout price. They then caused the sales prices for the properties to be much higher than the buyout price, to ensure large proceeds.
Fishman said Fullenwider’s role was as a “straw buyer” who, using an alias and false Social Security number, bought the North Wildwood properties at the inflated rates in 2007. To qualify for mortgage loans, Fullenwider and the other conspirators also created fake W-2 forms, pay stubs, bank statements and investment statements, authorities said.
Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Fullenwider and the others reportedly received a portion of the money from conspirators who had funds wired or checks deposited into various accounts.
Fullenwider faces a maximum of 30 years in prison and a $1 million fine when he is sentenced in January.
– Karen Zautyk
