Unlicensed Real Estate Appraiser Admits Role in Mortgage Fraud Scheme, Drug Possession and Distribution
|U.S. Attorney’s Office July 22, 2014|
NEWARK, NJ—A Monmouth County, New Jersey, man today admitted his role in a large-scale mortgage fraud scheme as well as distribution and possession with the intent to distribute Methylone, U.S. Attorney Paul J. Fishman announced.
Paul Chemidlin , 42, of Morganville, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to commit wire fraud and with distributing and possessing Methylone.
According to documents filed in this case and statements made in court:
From March 2011 through July 2012, Chemidlin and others submitted false mortgage loan applications to mortgage lenders for a property on Smith Street in Elizabeth, New Jersey. Chemidlin submitted letters to mortgage lenders that falsely stated that the borrower was obtaining the funds necessary to close the real estate transaction from a relative or friend in the form of a gift, when the funds were actually coming from a codefendant. Chemidlin provided fraudulent real estate appraisals, although he was not a licensed real estate appraiser.
While under home detention for charges stemming from wire fraud, Chemidlin was arrested for distributing and possessing with the intent to distribute Methylone.
The conspiracy count carries a maximum potential penalty of 30 years in prison and a $1 million fine. The drug count carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 10, 2014.
U.S. Attorney Fishman credited the FBI Newark Mortgage Fraud Task Force with the investigation leading to today’s charges: special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Housing and Urban Development, Office of Inspector General, Northeast Region of Investigations, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Inspector General Steve Linick; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory.
Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark, Joshua Hafetz of the General Crimes Unit and Charlton A. Rugg of the Narcotics/OCDETF Unit.
Defense Counsel: Paul Condon Esq., Jersey City, N.J.