Three suspects made appearances in a federal courtroom located in Newark New Jersey for a preliminary hearing stemming from federal charges for bank fraud.
The suspects included two real estate brokers and their client. According to law enforcement officials, the suspects participated in a “shotgun” loan scheme to defraud banks out of money. The suspects allegedly used the identities of other individuals and put up various properties as collateral in order to secure home equity lines of credit from numerous banks.
The bank lenders had no idea that the suspects were using the same property to get multiple loans.
The suspects’ alleged scheme eventually raised red flags with lenders, which prompted an investigation into the possible fraud. Investigators reportedly uncovered evidence that the suspects had defrauded banks out of more than $1 million over a three-year period.
The three suspects are a 58-year-old Bronx man, a 62-year-old Yonkers man, and a 65-year-old Ridgefield Park man. All of the suspects face criminal charges for conspiracy to commit bank fraud, which could potentially result in prison time.
To learn more about this case, access the NJ.com article, “3 Charged with Stealing Over $1M in Loan Scheme.”