Two New Jersey men have been charged with bank fraud for allegedly setting up fraudulent short sales of their own properties in Emerson and Park Ridge.
George Bussanich Sr., 56, of Park Ridge, and George Bussanich Jr., 35, of Upper Saddle River, were charged with one count of conspiracy to commit bank fraud and two counts of bank fraud.
Bussanich Sr. is alleged to have sold the Emerson and Park Ridge properties as short sales to straw buyers, for which he provided the purchase money. He later re-purchased the properties from the straw buyers. His son is alleged to have lied to one of the mortgage servicers about one of the properties.
The intended outcome of selling one’s own properties to a straw buyer and then re-taking ownership is to get a write-down in the principal owed on the property, at the expense of the original lender.
In 2014, the Bussaniches agreed to pay to pay $5.5 million – including $4 million in restitution – to settle allegations that they defrauded more than 30 investors and spent the money on Maseratis, a Ferrari and expensive homes, charges which they denied.
Read the original article in NorthJersey.com