By: Richard L. Smith
Today, in Newark federal court, Cabral Simpson, a 47-year-old man from Orange, New Jersey, received his sentence for his involvement in a mortgage fraud conspiracy.
Simpson, who had previously admitted to conspiring to commit wire fraud, was sentenced by U.S. District Judge Julien X. Neals to 20 months, equivalent to the time he has already served.
As a real estate investor, Simpson and his co-conspirators orchestrated a scheme involving the creation of fraudulent bank statements and employee verification records.
These falsified documents were used to bolster the profiles of property buyers, enabling them to receive mortgage loans under false pretenses.
The group was adept at transferring money into buyers' accounts to cover property deposits and submitting forged loan applications and supporting documents.
The impact of their actions was significant, inducing lenders to issue over $1 million in loans.
These fraudulent activities resulted in loan defaults, causing substantial financial losses to the lenders and the U.S. Department of Housing and Urban Development, amounting to more than $1 million.
In addition to the prison term, Judge Neals ordered Simpson to serve two years of supervised release and pay restitution of $1.29 million.
The case was brought to a close thanks to the diligent efforts of special agents from the U.S. Department of Housing and Urban Development – Office of the Inspector General, led by Special Agent in Charge Janine Rocheleau in Newark.
U.S. Attorney Philip R. Sellinger recognized their work, which was instrumental in the investigation and subsequent sentencing of Simpson.
The case serves as a stark reminder of the consequences of engaging in mortgage fraud and the legal system's commitment to prosecuting such financial crimes.