Rodd Accused of Manufacturing Documents
Albert Rodd was charged with conspiracy in a New Jersey Federal Court as a result of allegations that he manufactured documents in connection with a $30 Million mortgage fraud scheme where straw buyers purchased multi-million dollar homes in Bergen County, New Jersey and obtained loans based on inflated appraisals and falsified financial documents. Three other people were indicted in connection with this same scheme last month (click here to view the prior article) and eight other people have previously been charged and have pleaded guilty.
The information alleges that Rodd engaged in a conspiracy to defraud financial institutions between February 2002 and May 2003. The primary object of the conspiracy was to fraudulently induce lenders to make mortgage loans to straw buyers that were in excess of the purchase price of the properties and to distribute the excess mortgage proceeds to the conspirators. According to the information, from February to October 2002, a consultant, mortgage broker and others (the â€œorganizersâ€) recruited straw buyers to act as purchasers of property in name only in exchange for a fee. The organizers would enter into contracts to purchase properties. Falsified sales contracts would be prepared without the knowledge of the property sellers, that reflected sales prices higher than the actual sales prices, and the sellers names would be forged on the falsified contracts.
According to the information, from April 2002 to November 2002, Rodd manufactured false and fraudulent financial documents in the names of the straw buyers, including: (1) False W-2â€™s showing falsely inflated incomes for straw buyers. While these borrowers actually made between $16,000 and $40,000 per year, the false W-2â€™s reflected incomes of $500,000 to $600,000 and (2) False and fraudulent bank account statements for straw buyers reflecting average balances of $795,000 to $2.7M while actual balances were negative through $65,000.
Fraudulent mortgage applications were submitted to the lenders supported by the false financial documents manufactured by Rodd. Second loans were also obtained.
Properties identified in the indictment are:
7 Cassandra Drive, Alpine, New Jersey â€“ Loans for $2.97M and $600,000
21 Schaffer Road, Alpine, New Jersey â€“ Loans for $2.925M, $885,000 and $2.925M