Newark, NJResidents of the Garden State can rest a bit easier, as a federal court has convicted two New Jersey men on charges related to a multi-million mortgage and property flipping scam involving homes in the city of Paterson.
The two men, representing a larger group of unnamed coconspirators, allegedly defrauded investors of millions of dollars in mortgage loans for unqualified borrowers from 2002-2005 by selling two- and three-family houses at inflated prices.
Following a six-week trial, a Newark jury found the two men guilty of multiple charges, including wire fraud and money laundering. Both men face between five and eight years in prison, though the Associated Press claims that the federal government is expected to argue for longer sentences.
The charges come at a time when the housing crisis has left many prospective home-owners in a desperate financial state, adding an emotional resonance to the case.
Thus far, federal investigations into mortgage fraud have led to more than a dozen convictions in New Jersey alone.
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