Attorney General Gurbir S. Grewal announced that a father and son have pleaded guilty to defrauding investors of millions of dollars through two successive scams involving sales of bogus investments. After defrauding 26 investors in the first scam, the father and son agreed to pay $5.5 million, including $4 million in investor restitution, to settle a suit filed by the New Jersey Bureau of Securities, but they then proceeded to defraud 15 of the same investors of $3 million in a second scam.
The following defendants pleaded guilty yesterday before Superior Court Judge Margaret M. Foti in Bergen County:
George Bussanich Sr., 60, of Park Ridge, N.J., pleaded guilty to first-degree conspiracy to commit securities fraud and money laundering. Under the plea agreement, the state will recommend that he be sentenced to 10 years in state prison.
George Bussanich Jr., 39, of Saddle River, N.J. – who solicited investor funds with his father, George Sr., and mother, Wilma – pleaded guilty to second-degree securities fraud and second-degree money laundering. Under the plea agreement, the state will recommend that he be sentenced to eight years in state prison.
Wilma Bussanich, 58, of Park Ridge, N.J., pleaded guilty to third-degree money laundering. She faces a sentence of probation.
Officials say George Sr., George Jr., and Wilma Bussanich are jointly and severally liable for full restitution to the victims, along with the following four defendants who previously pleaded guilty to third-degree charges of money laundering – or conspiracy and theft in the case of Nazor – and face sentences of probation: Bryan Nazor, 47, of Chestnut Ridge, N.Y., an attorney; Heidi Francavilla, 60, of Park Ridge, N.J.; Robert Schooley, 67, of Park Ridge, an accountant; and Christopher Hanna, 37, of Parlin, N.J.
The defendants agreed to forfeit all assets seized in the investigation.
“These guilty pleas ensure that this father and son will face substantial prison sentences for their schemes, in which they ruthlessly stole the life savings of elderly investors to bankroll their own expensive homes, high-end cars, and luxury dining and travel,” said Attorney General Grewal. “What makes this case even more egregious is that they defrauded many of the same elderly retirees a second time after the first scheme was exposed, playing on their desperation to recover their lost savings.”
“These defendants perpetrated a classic Ponzi scheme in which they used a small fraction of the invested funds to pay investors purported ‘dividends’ or ‘returns’ and conceal that they were diverting most of the funds for their personal use,” said Director Veronica Allende of the Division of Criminal Justice. “We will continue to work with the Bureau of Securities to investigate and aggressively prosecute any dishonest operators who defraud New Jersey investors and deprive them of their hard-earned savings.”
Sentencing for the defendants is scheduled for June 28 before Judge Foti.
Bureau of Securities Chief Christopher Gerold urged people to call the Bureau of Securities before they invest in making sure that any securities that are offered to them are properly registered, as required by law. The Bureau can be contacted toll-free within New Jersey at 1-866-I-INVEST (1-866-446-8378) or from outside New Jersey at 973-504-3600.