An investor from Belleville, NJ is in trouble after prosecutors say he induced lenders to issue more than $1 million in loans that ultimately resulted in defaults, according to a local Patch report.
"According to the U.S. Attorney's Office, Cabral Simpson, 43, of Belleville, has been charged by indictment with one count of conspiracy to commit wire fraud and two counts of wire fraud," read the Patch report.
If charged, Simpson could be looking at 20 years in prison and up to $250,000 in fines. The statement from prosecutors alleges that Simpson in conjunction with conspirators created fake bank statements and employee verification records for buyers of properties. They then "transferred money into the buyers' bank accounts for payment of the deposit for a property."
"Simpson and his conspirators submitted fraudulent mortgage loan applications, supporting documents, and closing documents on behalf of the buyers," according to the statement.
"They induced lenders to issue more than $1 million in loans, resulting in defaults and exposing the lenders and the U.S. Department of Housing and Urban Development to more than $1 million in potential losses."
To learn more about the case, click here.